Board Members present: Dorothy Anderson, Peter Bartel, Susie Smith, Patrick Lanning, and Sandra Bishop.
Others present: Dick Helgeson, JoAnn Andersen, Tom Buckhouse, Deborrah Brewer, Cathy Bloom, Marty Douglass, Jim Origliosso, Mark Oberle, Scott Spettel, Eric Hiaasen, Dick Varner, John Yanov, and Krista Hince of the EWEB staff, Frank Nearing, KLCC-Radio; members of the public; and Ruth Atcherson, City of Eugene Minutes Recorder.
President Anderson called the Regular Meeting of the Eugene Water and Electric Board to order at 7:35 p.m.
AGENDA CHECK
There were no changes to the agenda.
APPROVAL OF THE CONSENT CALENDAR
Commissioner Smith moved, with a second from Vice President Bartel, to approve the consent calendar as submitted.
ITEMS FROM BOARD MEMBERS
Vice President Bartel raised concern about low income utility clients' ability to access the help such a client might need to meet its financial obligation to the utility. JoAnn Andersen, Director of Customer Services, stated that the calls received from customers have risen from 600 to 1,000 per day. She added that, of these calls, 20 are passed on to a supervisor when one does not agree with the outcome. She explained that Chuck Dalton, Customer Relations Manager, handles the consumer appeals. She said that many people are struggling with job and income loss, adding that there have been ten times as many "tampers" this year in comparison to last year.
Commissioner Smith discussed a conversation on the phone with a client who had been through the process of attaining aid on his utility bill and had been assessed a $300 deposit to get reconnected. Ms. Andersen reassured Commissioner Smith that such a scenario would only occur after every avenue of aid to such a client had been exhausted.
In response to a question from Commissioner Smith on stress levels for the EWEB workers who take these types of calls, Ms. Andersen stated that there are some events to be held in the summer for these workers that address stress, regular meetings with workers for discussion purposes and that, too, some phone calls were monitored so as to provide feedback or "coaching moments". Ms. Andersen commended the Board for its efforts in emphasizing conservation.
Vice President Bartel cited a concern that the numbers that indicate what the kilowatt usage of the previous year that are printed on monthly bills for comparison purposes were inaccurate. Ms. Andersen stated that the numbers would reflect accurately the previous year's usage for a long-term resident of a given address, but that the numbers can become skewed if a utility client moves or makes other changes. She added that the removal of this data from the bill is being considered, but it involves reprogramming the computer. She said that once the new bill format is put in place this June, the issue should be resolved.
Commissioner Bishop presented a replica of a EWEB toy truck to Commissioner Lanning that featured operative lights and ladders.
CORRESPONDENCE
Dick Helgeson, Director of Water & Steam Divisions, who was substituting for General Manager Randy Berggren, highlighted the following items of correspondence:
Mr. Helgeson outlined issues slated to be addressed at the next board meeting. He stated that there would be a Work Session in conjunction with the meeting scheduled for April 17, 2001, to bring recommendations to the Board regarding employee benefits. He said that there will be a mid-session legislative update at the regular meeting, as well as information on the contract negotiation with the Tieton project. He also noted that there would be an informational discussion on the water supply status, which will include projections on how the river system may be operating and what appears to be a new geothermal development.
PUBLIC INPUT
There was no public input.
PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS)/EWEB POOLING WITH LOCAL GOVERNMENT POOL FOR PERS
Cathy Bloom, Assistant Treasurer, requested Board approval to postpone the decision to join the pool until after April 30, 2001.
Vice President Bartel moved that EWEB postpone the decision to join the PERS pool until after May 1, 2001. Commissioner Lanning provided the second. Motion carried unanimously.
FINANCIAL POLICY/RESERVE LEVELS
Jim Origliosso, Treasurer, provided an overview, along with written materials, of the annual financial review. He stated that the bond rating for EWEB is good (i.e. primarily "AA" and "A1").
Commissioner Smith asked if, given the volatility of the market, the bond rating apparatus would perceive a $28 million power operating reserve as enough or not enough for a good rating. Mr. Origliosso responded that it was considered the "low end of enough", adding that given the increasing power costs, a power operating reserve of $40 to $60 million would be optimal.
Mr. Origliosso delineated the bond authorizations and the financing calendar. He noted that the power reserve support could range between +$70 million to -$100 million given the volatility of the market.
In response to a question from Commissioner Bishop, Mr. Origliosso stated that there will be Board action on all items relating to debt.
STRATEGIES FOR PHASING MASTER PLAN IMPLEMENTATION
Deborrah Brewer, Master Plan Project Coordinator, explained that EWEB is in Phase Four of the Master Plan and is still developing the vision. She added that once there is a sense of the agreement on phasing, strategies for financing will need to be looked at.
Mr. Oberle outlined the memorandum on the Master Plan sent to Board members with the aid of an overhead projection. He noted that the current plan is based solely on the spatial relationships of the development projects and not the financing of them. He asked Board members to consider the format and the content (i.e. should a project be moved to a different time from the projected plan).
Commissioner Smith suggested that the riparian issues be addressed early on in the planning phase as they may affect placement of projects. She added that, as there is money available for salmon and watershed enhancement, there is a "brilliant opportunity" to include a demonstration of the environmental stewardship that EWEB espouses. She noted that there is grant money available and encouraged the inclusion of these sorts of projects in the Master Plan.
Mr. Oberle stated that, at this point, the planned cafeteria is not a definite element of the plan.
Vice President Bartel recommended prioritizing the phasing of the project to aid the Board in its decision making. He noted that there was some movement to relocate part of the organization to another site and, as such, there was a need to "think comprehensively." Ms. Brewer stated that the line crews were getting more information about the plan and that an effort would be made to find a place to store equipment and materials while the plan was being implemented. Mr. Helgeson supported continuing to explore different options and the possibility of finding another place to store equipment and materials.
Commissioner Lanning supported moving ahead with the phasing of the Master Plan but expressed concern that the transition happen smoothly. He noted that it was important to consider what the City of Eugene is doing with the park. Ms. Brewer responded that there is a notice posted at the Fifth Street Market with the proposed plan for Skinners Butte Park and it includes the opportunity for public comment.
Commissioner Bishop suggested that the needed seismic improvements be given a greater priority. Commissioner Smith asked if practical issues such as a roof needing repair were being taken into consideration in the plan. Ms. Brewer stated that compliance issues would be met.
Commissioner Smith cited the development of public open space and wondered if a partnership with the City could be fostered as there is a greater public benefit. Ms. Brewer stated that this is a possibility, and that the City is definitely interested in a potential parking structure that is part of the plan.
BPA SUBSCRIPTION DECISION
Eric Hiaasen, Power Marketing Analyst, stated that the staff unanimously recommends the purchase of a "Slice/Block" from the Bonneville Power Administration. He cited the benefits to the "Slice/Block" option which are, as follows:
He discussed the possibility of a BPA rate hike due to a second dry year.
Commissioner Smith moved, with a second from Vice President Bartel, to reaffirm the decision to choose the "Slice/Block" energy option with the BPA.
Mr. Hiaasen stated, in response to a question from Commissioner Bishop, that the ancillary benefits would likely begin in 2003, though the BPA is predicting that it will begin in 2002.
Commissioner Smith said (verbatim): "Among all the other good reasons for doing this, the most compelling statement I read in the last staff report reviewed was that you can't model the likelihood that the Bonneville staff will make a better decision than will EWEB staff. I think that, for me, our decision is really a reaffirmation at the success of the managers of our portfolios and the known quantity and trust in the work that you do. To me, that's what it all boils down to, that we're doing this because we believe in our institutional capabilities to do the job. The track record is there, the skills have been developed."
In response to a question from Vice President Bartel about resources, Mr. Spettel discussed the 5(b)-9(c) issue, that states that resources in the northwest can not be exported unless certain conditions can be met. He added that this does not affect sales of power to California.
The motion carried unanimously.
The meeting adjourned at 8:58 p.m.
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Assistant Secretary President