Board Members Present: Dorothy Anderson, Peter Bartel, and Sandra Bishop. Commissioners Susie Smith and Patrick Lanning were excused.
Others present: Randy Berggren, Dean Ahlsten, JoAnn Andersen, Terry Bequette, Marty Douglass, John Femal, Gary Jackson, Mat Northway, Jim Origliosso, Scott Spettel, Dick Varner, Jm Wiley, John Yanov, and Krista Hince of the EWEB staff; Lance Robertson, Register-Guard, and members of the public. The minutes were completed by the City of Eugene Minutes Recorder by tape.
AGENDA CHECK
President Anderson called the meeting to order at 7:30 p.m.
The Board approved the agenda, as written.
APPROVAL OF CONSENT CALENDAR
1. Sybase Database - Information Services - Corporate Services - $24,573
Vice President Bartel moved, seconded by Commissioner Bishop, to approve the Consent Calendar, as written. The motion passed unanimously.
ITEMS FROM BOARD MEMBERS
Commissioner Bishop reported that EWEB representatives, including line personnel, had testified before the Judicial Committee in Salem. She said the focus of the testimony was legal liability related to property owners' refusal to cut trees and/or allow EWEB crews onto their property to cut trees that are encroaching into power lines, and the associated safety risks.
President Anderson reported that the McKenzie Watershed Council had hired an Information Specialist.
CORRESPONDENCE
General Manager Randy Berggren reported that beginning March 5, EWEB would begin part two of its electrical safety radio advertisements which would remind customers to be mindful of power lines when trimming trees around their homes.
Mr. Berggren reminded the Board of the upcoming retreat planning session, scheduled for March 16 and 17 at the Eugene Hilton Hotel. He presented a brief overview of the retreat planning session agenda.
PUBLIC INPUT
Chuck Stolseck, 285661 Royal Avenue, expressed concern that the second line of EWEB's proposed transmission station in west Eugene would encroach on his property. He requested additional information regarding EWEB's proposal.
President Anderson encouraged Mr. Stolseck to listen to the upcoming Board presentation regarding the transmission line proposal.
Soshie Hernandez, read into the record a letter, copies of which were submitted to the Board.
Kathy Ging, also addressed the Board regarding the Lane to Irvington Transmission Line Route.
Marilyn Flannigan, expressed concern regarding EWEB's proposed transmission line in west Eugene. She said EWEB's additional lines would result in a total of 8 lines running across her farmland.
4-J TALE OF TWO RIVERS
John Femal, Community Education Coordinator, introduced several Monroe Middle School students who participated in a project as part of EWEB's grant-funded educational program entitled A Tale of Two Rivers.
A Tale of Two Rivers project director Pat Lyon, explained that A Tale of Two Rivers was in its sixth year of operation. He said the purpose of this presentation was to showcase the Monroe Middle School project. Mr. Lyon noted that in October, 2001, the project was acknowledged by Sony as an innovative program that utilizes technology in education.
Referring to a series of overhead displays, Monroe Middle School teacher Cecelia Brands and participating students presented a summary of the Monroe Middle School project. It was explained that the focus of the project was to study the migratory patterns of both wild and hatchery-born fish, and that 250 North Umpqua River fish were being tracked as part of the 2002 project. The participating students presented an overview of their project findings and outcomes.
IRVING TRANSMISSION LINES
Gary Jackson, Senior Civic/Mechanical Senior, explained that the transmission line project was now in the final stage of the route selection recommendation process. He recalled that an initial analysis of 29 proposals resulted in the identification of three potential routes: 1) parallel to the Bonneville Power Administration line; 2) partially following the Bonneville line and then diverting to Greenhill, Clearlake, and Enid; and 3) following the Bonneville line to Jessen and then to Enid.
Mr. Jackson presented an overview of 1) the public input process; 2) the sustainability aspect of the proposals; and 3) staff's recommendation and proposed next steps. Mr. Jackson forwarded staff's recommendation that the Board approve the proposed route and the authorization to enter into agreements with the Bonneville Power Association for the terminal, the Lane substation, and joint use of the BPA existing 500 kV right-of-way to begin acquiring additional easements and permits needed for the construction of the proposed transmission line.
Commissioners asked a number of clarifying questions.
Commissioner Bishop moved, seconded by Vice President Bartel, to approve the proposed route and authorize staff to enter into agreements with the Bonneville Power Association for the terminal, the Lane substation, and joint use of the BPA existing 500 kV right-of-way to begin acquiring additional easements and permits needed for the construction of the proposed transmission line. The motion passed unanimously.
UMATILLA
Scott Spettel, Power Management and Planning Manager, requested that the Board authorize General Manager Randy Berggren to sign the joint development agreement with the City of Hermiston and the Confederated Tribes of the Umatilla and the Williams company. He said Board approval would accomplish: 1) allow EWEB to obtain reimbursement for money already spent on the project; and 2) provide staff the opportunity to participate in the development of the project attributes. Staff presented an overview of the project and responded to a number of clarifying questions from Commissioners.
Vice President Bartel moved, seconded by Commissioner Bishop, to authorize General Manager Randy Berggren to sign the joint development agreement with the City of Hermiston and the Confederated Tribes of the Umatilla and the Williams Company. The motion passed unanimously.
POWER MARKETING
Referring to written materials which were distributed to the Board as part of the meeting agenda packet, Dick Varner, Fiscal Services Supervisor, reported that recently obtained data indicates that EWEB will have approximately $12 million in power operating reserves at the end of September, 2002; however, the following variables may impact that forecast: 1) stream flows; 2) retail loads; 3) forced outages; 4) market prices; 5) margin on wholesale sales (particularly California); and 6) viability of short-term generation projects.
Referring to written materials, copies of which were distributed to Commissioners, Mr. Varner presented the Board with the following three options with respect to EWEB's electrical rate: 1) utilize reserves through September, 2002, and take no rate increase; 2) take modest increase (5-6 percent); or 3) take a 15 percent increase. Mr. Varner reviewed the risks and opportunities related to each of the three options. Mr. Varner responded to a number of clarifying questions from Commissioners. Commissioners discussed, at length, whether to utilize capital or operating reserves in-lieu-of taking a significant rate increase. Mr. Varner noted that the Board was scheduled to take action on the options during its March 6 meeting.
The meeting adjourned at 9:30 p.m.
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Assistant Secretary President