Board Members present: Sandra Bishop, Dorothy Anderson, Peter Bartel, Susie Smith, and Patrick Lanning.
Others Present: Randy Berggren, JoAnn Andersen, Tom Buckhouse, Cathy Bloom, Ed Case, Marty Douglass, Cathy Hamilton, Garry Kunkel, Roseanna McArthur, Mark Oberle, Jim Origliosso, Dick Varner, and Krista Hince of the EWEB staff; Mike Dyer, Marianne Dyer, and Kim Kunkel, Minutes Recorder.
President Bishop called the Special Board Meeting of the Eugene Water & Electric Board (EWEB) to order.
RECOGNITION OF FORMER EWEB COMMISSIONER MIKE DYER
The Board and staff recognized and expressed appreciation to outgoing EWEB Commissioner Mike Dyer. A plaque was given to him along with a commemorative tee-shirt of the hydro wind project in a tie-die pattern. Cake was served.
(The Board took a short break)
AGENDA CHECK
General Manager Randy Berggren noted that Consent Calendar Item 2 was actually a separate agenda item. President Bishop determined that there was consensus to approve the agenda, as amended.
APPROVAL OF CONSENT CALENDAR
President Bishop noted that the following items were included on the Consent Calendar:
Personal Services Contracts
Vice President Anderson requested that the Regular Board Meeting minutes of June 20 and July 5 be removed from the consent calendar.
Commissioner Bartel moved, seconded by Commissioner Lanning, to approve the Consent Calendar, with the exception of the aforementioned meeting minutes. The motion passed unanimously.
CORRESPONDENCE
Mr. Berggren reviewed the draft agendas for the July 28 Board Planning Session and August 1 Work Session and Board Meeting.
Mr. Berggren presented a brief report of a recent meeting of Umatilla Project participants. He said the meeting, which was held in Pendleton, presented an opportunity for participants to get to know one another. President Bishop said the meeting resulted in all participants agreeing to proceed to the next step of the proposed project.
ITEMS FROM BOARD MEMBERS
Commissioner Smith asked that Board members review their copies of her notes regarding the July 7 Board Planning Session prioritization process from which she was absent. She presented a brief overview of her rationale for ranking strategies as she did.
President Bishop reviewed a number of upcoming Board tours of EWEB facilities.
PUBLIC INPUT
There was no public input.
ADVERTISING REQUEST PROPOSAL (RFP)
EWEB Public Affairs Manager Marty Douglass recalled that the Communications Consulting contract was pulled from the Consent Calendar during the July 5 Board Meeting.
Following a brief review of the history leading up to the Board's present consideration of this contract award, Mr. Douglass said staff was requesting that the Board approve the award of the one-year Communications Consulting contract to the Ulum Group.
Commissioner Smith stated that, based on her assumption, that staff followed EWEB's contract award procedures, she would support awarding the contract to the Ulum Group. She said she was concerned, however, about the degree to which Ulum utilizes its subcontracting firm which employs an individual who was vocally opposed to EWEB's Telecommunications Project. She requested that staff actively manage Ulum's utilization of the subcontracting firm to ensure that EWEB's Telecommunications Project receives the highest quality work.
Commissioner Bartel reiterated his displeasure, expressed during the previous Board Meeting, with the contract award process. He said he could not, in good conscience, vote in support of awarding the contract to the Ulum Group.
Ed Case, Purchasing Coordinator, explained that, acting as the Contract Review Board, the Board has the right to ensure that the award procedure was consistent with the agreed-upon procedure. He said that, absent just cause, the Board had little authority to disapprove the contract award once the letter of intent to award has been issued.
Mr. Case said there was a "termination for convenience" clause which would allow EWEB to discontinue the contract with 30-days notice; however, EWEB would prefer that there be just cause for taking such action.
Commissioner Smith inquired as to what entity would be involved in advertising EWEB's Telecommunications Project. Cathy Hamilton, External Communications Coordinator, said promotion of the project would likely be conducted in-house, following the design phase.
Vice President Anderson expressed support for Commissioner Smith's suggestion that staff actively manage Ulum's utilization of its subcontracting firm.
President Bishop said it would have been appropriate for staff to discuss this matter with the Board earlier in the process. She said it was her opinion that public monies should not be spent on contracting with a public relations firm that is associated with an individual who is publicly opposed to EWEB's Telecommunications Project. She said it was her opinion that a potential conflict of interest exists, and that although EWEB may be legally bound to award the contract, she would vote "no."
Vice President Anderson moved, seconded by Commissioner Lanning, to approve the Ulum Group contract with the understanding that staff will manage Ulum's utilization of its subcontracting firm to ensure that it does not engage in work directly related to EWEB's Telecommunications Project. The motion passed, 3:2, with Commissioner Bartel and President Bishop opposed.
STEAM FUELS CHARGE ADJUSTMENT
Referring to a memorandum entitled Proposed Adjustment to EWEB"s Steam Fuels Charge, copies of which were included in the meeting agenda packet, EWEB Director of Water & Steam Divisions Dick Helgeson explained that EWEB periodically adjusts its steam fuels charge to recover projected costs for natural gas, fuel oil and steam purchases used in the supply of steam to the downtown district heating system. He said the next regularly scheduled adjustment would normally take place in the fall; however, gas prices have continued to escalate dramatically over the past quarter. He said that to reflect those higher prices, and to avoid an under-recovery to be made up in future months, staff is recommending that an interim adjustment be made, effective with August billings.
EWEB Fiscal Services Supervisor Dick Varner said it was staff's recommendation that the monthly Steam Fuels Charge be increased on an interim basis to $8 per Klb. He said staff would then revist the charge and either raise or lower it in November when prices are established for the winter months. He said this action will unfortunately result in a net steam price increase of approximately 20 percent which, if sustained into the next heating season, will clearly have a major impact on EWEB's downtown customers.
Mr. Varner said the advantage to the proposed action was that the initial impact of EWEB's fuels charge increase would come during the lowest use months, and EWEB will have an opportunity to communicate with customers well in advance of their higher bills in the fall. In addition, he said EWEB will avoid running a deficit in the fuels account, which would only make matters worse if this action is delayed. Mr. Helgeson noted that Northwest Natural Gas' retail customers will experience similar increases by next fall as well.
Commissioner Smith said there was no question that all possible discretionary cuts had been made to the Steam Utility, and that a rate adjustment was necessary at this time.
Vice President Anderson moved, seconded by Commissioner Bartel, to approve the Fuels Charge Increase, as proposed. The motion passed unanimously.
ITEMS REMOVED FROM CONSENT CALENDAR
The Commissioners reviewed the Regular Board Meeting minutes of June 20 and July 5.
President Bishop noted that there was a typographical error in a July 14 memorandum concerning a correction to the July 5 Board Meeting minutes.
Referring to paragraph 1 on page 2 of the June 20 Regular Board Meeting minutes, Vice President Anderson requested that two references to "public hearing" be replaced with "public meeting."
Vice President Anderson moved, seconded by Commissioner Bartel, to approve the minutes of the June 20 Board Meeting, as amended. The motion passed unanimously.
Referring to page 3 of the July 5 Regular Board Meeting minutes, President Bishop requested that paragraph 6 be amended to read: "President Bishop noted an article that was printed in the Register Guard regarding a power plant in Umatilla. She noted that this article refers to another site, which would have no impact on the negotiations in progress, between EWEB, the Confederated Tribes of the Umatilla, and the City of Hermiston, on the feasibility study."
Referring to page 6 of the July 5 Regular Board Meeting minutes, President Bishop requested that sentence 2 of paragraph 6 be amended to read: "She expressed concern with the award, noting a potential conflict of interest with the company" In addition, she requested that a third sentence be added, as follows: "She expressed her opinion that there is a problem with granting a public relations contract to a firm who is depending on work from an affiliated business firm which has a principal owner who has publicly opposed EWEB going into the telecommunications business."
Vice President Anderson moved, seconded by Commissioner Bartel, to approve the minutes of the July 5 Board Meeting, as amended. The motion passed unanimously.
The meeting adjourned at 9:05 p.m.
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Assistant Secretary President