Board Members present: Sandra Bishop, Dorothy Anderson, Peter Bartel and Susie Smith.
Others Present: Randy Berggren, JoAnn Andersen, Ken Beeson, Barb Bellamy, Terry Bequette, Cathy Bloom, Deborrah Brewer, Tom Buckhouse, Dick Helgeson, Jerry Hohman, Garry Kunkel, Debbie Lawder, Roseanna McArthur, Jim Origliosso, Mark Oberle, Dick Varner, and Krista Hince of the EWEB staff; Kris Aanderud, Minutes Recording; and Patrick Lanning, guest.
Vice President Bishop called the Special Work Session of the Eugene Water & Electric Board (EWEB) to order.
2001 BUDGET AND WORK PLAN
Dick Varner, Fiscal Services Supervisor, first reviewed the Proposed Schedule for 2001 Work Plan and Budget, copies of which were included in the meeting agenda packet. Mr. Varner next reviewed a list of Assumptions for 2001 Budget, which was presented as an overhead presentation. Included in the presentation were the following assumptions:
Commissioners discussed the list of assumptions, with general questions.
Mr. Berggren spoke about the potential increase FTE in staffing, due to additional projects, which Mr. Varner included as a net 1-2 additional FTE.
Vice President Bishop asked how much leeway there was, in the ability to bond additional funds without impacting the ratings. Mr. Varner said that utilities generally have 45-55 percent debt, and that EWEB was at around 40 percent and that additional bonding should not impact the ratings.
Commissioner Smith asked if the $400,000 target to reduce O & M costs was aggressive, given the potential increase in FTE. Mr. Berggren said that it was more aggressive than might be reached, but that it was a good opening assumption.
Mr. Varner also reviewed the Electric Proforma Update (non-specific) and Water and Steam Proforma (with specific financial projections for 2000 - 2004).
Vice President Bishop asked how a recession might impact the wholesale electric prices. Mr. Varner said that the prices could drop dramatically if there was a recession 12 to 18 months out.
HEADQUARTERS SITE MASTER PLAN
Deborrah Brewer, Project Manager outlined the presentation that she and staff would present, including the draft Request for Proposal (RFP) which is targeted to be out on Friday.
Ms. Brewer, referring to an Interoffice Memo, Update on EWEB Site Master Plan Review, began with a review of the Downtown - Franklin/Willamette Visioning project. Commissioner Anderson spoke about the Downtown Visioning meeting and the focus on the downtown corridor, rather than the river corridor. Vice President Bishop expressed concern with the process of the committee and the lack of planning that was really occurring. She also spoke that there was a recurring theme for a demand for access to the Willamette River through the east end of the EWEB property.
Ms. Brewer proceeded with a discussion of the Project Timeline for Siting of Federal Courthouse. Commissioners discussed briefly the issues surrounding the potential condemnation of lands for the siting of the federal courthouse. Ms. Brewer noted that staff was researching the potential for cost reimbursement for business relocation expenses.
Commissioner Anderson asked about the timeline for the siting of the federal courthouse and the master plan review. Ms. Brewer said that although it might be tight, there should be adequate time to get the information.
Ms. Brewer also reviewed the Request for Proposal for EWEB Master Plan Review.
Commissioner Smith asked for clarification on page 7 of the RFP, C. Tasks for Contractor, (3). She asked if this would put EWEB "back in a box" and expressed that there be an allowance for alternatives. General Manager Randy Berggren acknowledged this suggestion and Ms. Brewer suggested that the word, "most" be deleted and "effectively balance" be added.
Ms. Brewer referred Commissioners specifically to Section D. Deliverables from Contractor (page 7), and Section VI - Evaluation and Selection Criteria (page 12). Ms. Brewer noted that there would be a pre-proposal conference when the RFP is released.
Ms. Brewer asked if it was acceptable to continue to work with the subcommittee of Commissioners Smith and Bartel. There was no objection from Commissioners.
Commissioner Anderson asked if there would be cost estimates included with the proposals. Mr. Berggren said that if there was a push to get too specific too soon, viable options might not be considered.
Commissioner Anderson asked if there was an opportunity to move the substation to the contaminated site. Debbie Lawder, Environmental Specialist and a member of the Master Plan Site Committee Team said that they might have to excavate down to four feet on the site, but it might be a very unique opportunity to explore.
Ms. Brewer noted that this work is not budgeted. She said that they estimated an expense of approximately $35,000. Ms. Brewer reviewed the list of contractors to whom the RFP would be sent.
TELECOMMUNICATION PROJECT PHASE II - DEVELOPMENT PARTNER SELECTION STATUS
Since the Board of Commissioners concluded the Work Session earlier, and the Regular Board Agenda was going to run long that evening, at the request of the Board, Item 10 on the agenda, Telecommunication Project Phase II - Development Partner Selection Status, was moved from the Regular Board Meeting to the Work Session.
The Board took a short break at 7:00 p.m. and reconvened at 7:10 p.m
Patrick Lanning, Commissioner Elect was invited to sit with the Board, until he was sworn as a new commissioner at the Regular Board Meeting later in the evening.
Ken Beeson, Telecommunications Project Manager, reviewed the process on the Telecommunications Project, EWEB Board Presentation, July 5, 2000, including the notice of intent to award to SigCorp. He said that in the next month, an agreement would be developed, which will be brought back to the Board in early August.
Mr. Beeson explained that staff wanted to develop an agreement with Sigcorp to support the development of the Phase II business plan and feasibility analysis. The scope of work from this agreement would include assistance in development of the business plan including business descriptions and objectives, system design and cost, financial plan, management plan, and operating plan. If the project proved to be feasible, a longer terms agreement with Sigcorp could then be developed. He told the Board that staff would be concentrating on completing this initial development agreement with Sigcorp during the next month and planned to return to the Board in early August to review the proposed agreement and request authorization to proceed.
In response to a question from Commissioner Bartel, Mr. Beeson spoke about the development of the business plan, including the operation and maintenance plan and other components which will be identified in the development of the business plan. Commissioner Bartel spoke about the need for the development of standards, specifically identifying fiber optic standards, so that there was seamless service. Mr. Beeson said that those issues would be addressed in the business plan. He spoke about how it would interface with other carriers in the community, as well as what will be built and how much it will cost, will be included.
Mr. Berggren spoke to the need to focus on development of a business plan with proforma. Commissioner Bartel spoke to a historical perspective where EWEB has always been in control of standards regarding the utility, but that the telecommunications system was much bigger than EWEB and that there would need to be a high level of effort to have standardization and make him feel comfortable. Mr. Berggren spoke about the difficulty of identifying a single standard because the standards are constantly changing and upgrading. He explained to the Board that staff was working to complete an overall work plan for the telecom effort. Mr. Berggren said that the successful development of the business plan would be critical to the implementation of the program.
Vice President Bishop asked if the partnership with Sigcorp would be taken up in two phases. Mr. Beeson said it could be considered that way. Mr. Berggren said that there would be some overlap in the development. Mr. Beeson shared with Commissioners the Telecommunications Project Work, and Business Plan Development, included in the packet of materials distributed to them.
Vice President Bishop asked for clarification if the "due diligence review" had been completed. Mr. Beeson said it had been partially completed, but would be completed before the issue was brought back for Board consideration in August.
Vice President Bishop adjourned the Work Session at 7:36 p.m.
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Assistant Secretary President