Board Members present: Sandra Bishop, Dorothy Anderson, Peter Bartel, and Susie Smith. President Mike Dyer was excused.
Others present: Randy Berggren, Louise Bangs, Terry Bequette, Ed Case, JoAnn Andersen, Ken Beeson, Tom Buckhouse, Marty Douglass, Cathy Hamilton, Garry Kunkel, Jim Origliosso, Debra Wright and Krista Hince of the EWEB staff; and Kim Kunkel, Minutes Recorder.
Noting the absence of President Dyer, Vice President Bishop called the Work Session of the Eugene Water & Electric Board (EWEB) to order.
TELECOMMUNICATIONS PHASE II DEVELOPMENT STATUS
EWEB Telecommunications Development Manager Ken Beeson said the proposed agenda for the Work Session was, as follows: 1) Introduction/Overview; 2) Phase II Implementation; 3) Public Network; 4) Phase I Efficiencies; 5) Public Information; and 6) Discussion.
Risk/Purchasing Manager Debra Wright noted that a Request For Qualifications (RFQ) for EWEB's future Telecommunications Project development partner was recently issued and the responses were evaluated. She said four entities qualified for Request For Proposals (RFP) process. Ms. Wright said the RFP requests that each entity responded to one of two proposals:
Proposal A: Consultive services work including business plan development, system design services, and construction management.
Proposal B: Turn-key development partner including above items plus procurement, customer services and operation/maintenance.
Ms. Wright said the RFP was scheduled to close on May 17.
Ms. Wright presented a brief overview of the RFP mandatory provisions. She said the four entities would be evaluated against the provisions on a pass/fail basis.
Commissioner Bartel suggested that EWEB send to City Council a one-page memorandum to City Council describing the RFP process and the criteria by which entities will be evaluated.
Mr. Origliosso discussed the Telecommunications Project Business Plan. Noting that the Business Plan would be drafted and available to the public for review on or about September 1, Mr. Origliosso said components of the Business Plan that support the financing effort would include obtaining an independent market assessment (RW Beck), and retaining the services of two financial underwriting firms (JP Morgan and Morgan/Stanley).
Mr. Beeson presented an overview of the proposed Phase II Implementation and Development time line, as follows:
Commissioner Bartel inquired as to whether other utilities have financed their telecommunication systems via revenue bonds.
Mr. Origliosso responded that most utilities have financed their systems with cash. Ms. Wright said financing the system with bonds, particularly if the bonds are rated, would set a precedent.
Mr. Origliosso inquired as to whether the Board's understanding was consistent with his as to the notion that leasing unused fiber as equity was not inconsistent with any existing agreements between EWEB and the City of Eugene. The Board concurred with Mr. Origliosso's understanding of the matter.
With regard to the public review process, Ms. Hamilton said the process would begin directly following the May Primary vote and conclude at the time of the next vote. Ms. Hamilton noted that EWEB committed to City Council that it would exceed its current public involvement process with respect to this project. She said EWEB will integrate into the Telecommunications Project Business Plan a public process that includes an information/education component followed by an opportunity to provide additional feedback.
Commissioner Bartel suggested including in the public involvement process a component by which to engage the business community. In addition, he stressed the importance of addressing a broad spectrum of constituents. He suggested scheduling regular updates with City Council and Lane County as well.
With regard to the "public network" component of the project, Ms. Wright reported that during a recent meeting with LCOG representatives, EWEB staff discussed the possibility of marketing a "lit" product as opposed to dark fiber. She stated that since that initial discussion, representatives of various public agency stakeholder groups has been established to explore technical options and draft an implementation plan.
With regard to the current status of Phase 1 of the project, Mr. Buckhouse said the following activities were currently underway: 1) technical training (multiplexer operation and maintenance, junglemux user class); 2) substation cut over (voice ring-down circuits, SCADA remote terminal units, relay communications); 3) electric applications (analysis of connecting 25 large customers); and 4) telecommunications consortium (maintaining contact with local consortiums).
Mr. Beeson reported that EWEB was working to coordinate its telecommunications project with Springfield Utility Board's (SUB's) fiber installation. He said staff was assessing the possibility of utilizing SUB's fiber in the Hayden Bridge area to establish connectivity to an EWEB substation.
Cathy Hamilton, External Communications Coordinator, discussed the public education process that is currently underway. She said this includes sending a postcard to all customers announcing a May 1 public forum concerning the project. Ms. Hamilton said the mission of the public education process was to present the facts of the project and clarify the issues. She noted that public speaking engagements, to such audiences as neighborhood groups, were being scheduled as well.
The meeting adjourned at 7:20 p.m.
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Assistant Secretary President