Board Members present: Dorothy Anderson, Peter Bartel, Susie Smith, Patrick Lanning, and Sandra Bishop.
Others present: Randy Berggren, Dick Helgeson, Dick Varner, Jim Wiley, Dave Koski, Marty Douglass, Gale Banry, Stephen West, Mel Damewood, Tom Buckhouse, Jim Origliosso, Bill Fletcher, and Krista Hince of the EWEB staff; Joe and members of the public.
President Anderson called the Regular Session Meeting of the Eugene Water & Electric Board (EWEB) to order at 7:22 p.m.
AGENDA CHECK
President Anderson moved Public Input from David Hinkley so that it would occur prior to the consent calendar as it was in reference to three items contained thereof.
David Hinkley, 1350 Lawrence Street, Apartment 6, Eugene spoke as an individual to consent agenda items 6, 7 and 8. He stated that he had researched ORS 279.845 and that it was not being lawfully administered. He said that the law requires the DAS to set a fair price. He read from the ORS and Administrative Rules.
APPROVAL OF CONSENT CALENDAR
1. Minutes of May 23 and June 5, 2001 Work Sessions
Intergovernmental Agreement
2. EWEB/U.S. Forest Service McKenzie Ranger District - USFS Seasonal Employees Electric Division - $20,000 annually through 2008.
Business Service Agreements
3. PSI - Hayden Bridge Expansion/Phase I - Reservoir, Pump Station and Electric Upgrade - Water Division - $21,668.
4. Slayden Construction - Hayden Bridge Expansion/Phase I Reservoir, Pump Station and Electric Upgrade - Water Division - $9,395,000.
5. Wildish Building Company - City View 800' Reservoir No. 2 - Water Division - 842,000.
6. Laurel Hill Center - Light Maintenance Services - Facilities Services Division - $64,000.
7. Laurel Hill Center - Headquarters Contracted Services - Facilities Services - $16,000.
8. Garten Services, Inc. - Headquarters Contract Services - Facilities Services - $266,318.
9. Dale Smith - Telecommunications Technology Consulting - Electric Division - $30,000.
Intergovernmental Agreement
10. Lane Council of Governments Intergovernmental Agreement with EWEB - $9,741.
Budget Amendments
11. Budget Amendment for Residential and Business DSM Resource Programs - Energy Management Services - Customer Services - $3,339,598.
12. Budget Amendment for Re-powering of Steam Plant Generators 2 and 3 - Electric Division - $3,500,000.
President Anderson pulled items 6, 7, and 8 as a result of Mr. Hinkley's testimony.
Commissioner Bishop pulled item 9 and the minutes from the Work Session of May 23, 2001.
Vice President Bartel pulled item 12.
Vice President Bartel, with a second from Commissioner Lanning, moved to approve the remaining items on the consent calendar. The motion passed unanimously.
ITEMS FROM BOARD MEMBERS
President Anderson highlighted the bus tour she had participated in that had been sponsored by the McKenzie Watershed Council. She said the tour stopped at Helfrich Landing, Eagle Rock Lodge, Leaburg Lake, and Gossler Farms.
President Anderson directed Board Members to consider a letter from Ms. Mary Walston in regard to the possibility of the City Council implementing instant runoff voting as a means to elect the mayor and city councilors. Ms. Walston had requested the Board of EWEB to render an opinion prior to the next meeting of the City Council on June 25. Vice President Bartel felt that there was not enough time to formulate a thoughtful response. Commissioner Bishop commented that she did not think the Board could come to an agreement about it at this time. President Anderson stated that she would relay to the Council that the Board did not have enough time to properly discuss the issue.
Vice President Bartel said that he had received approximately 12 phone calls regarding the issue of tiered rates. Continuing, Vice President Bartel stated that he had received a letter from Mel Erikson thanking EWEB for not paying on the load curtailment agreement regarding the Weyerhaeuser situation. General Manager Randy Berggren responded that there were some inaccuracies in the letter. President Anderson added that Weyerhaeuser is not being paid for the time reduction incurred by its layoffs. It was agreed by the Board that a letter from the Board would be sent to Mr. Erikson clarifying the load curtailment agreement.
Vice President Bartel noted that he had been looking at the energy savings by EWEB and that it seemed to be doing a good job with the exception of the Credit Union and the Child Care Center. He wondered why this was so. Mr. Berggren stated that he assumed that the two branches of EWEB do participate in energy savings.
Commissioner Bishop said that she had received a letter from a customer who was involved in a neighborhood dispute regarding the location of and access to an EWEB power pole. She stated that she had surveyed the situation in person and that it merited attention from staff.
Commissioner Bishop thanked the staff for all the information regarding the Glenwood situation.
In response to a concern expressed by Commissioner Bishop, Mr. Berggren suggested that Board Members should call dispatch or they could call the Board room directly when delayed or were unable to attend a Board meeting. He said he would investigate other options for Commissioner Bishop.
CORRESPONDENCE
Mr. Berggren directed Board Members to look over the attachment entitled Important Dates to Remember for the Summer.
Mr. Berggren stated that Mr. Helgeson had sent out a packet for Board Members to look over entitled Proposal Concerning Placement of Underground Utilities. He said that the members should call staff with any questions or comments.
Continuing, Mr. Berggren highlighted the memorandum from Deb Brewer re: Hayden Bridge Open House Communication. He noted that there will be a special tour for Springfield City Council members.
Mr. Berggren said that a management letter from PricewaterhouseCoopers had been received (attachment: letter from PricewaterhouseCoopers). Commissioner Lanning and Commissioner Bishop requested a meeting with staff on this topic and Mr. Berggren agreed to set it up.
Mr. Berggren noted that long time employee and historian Bill Eaton had passed away and commended the work he had done as the curator of the EWEB museum of electrical history.
Mr. Berggren gave a brief overview of the agenda for the July 3 meeting. He said that some items would be moved to the Work Session and that the BPA contract would be brought forward for action.
PUBLIC INPUT
Dawn Lesley, 4495 River Rd., Eugene, gave glowing praise for the maintenance staff as a power outage in her neighborhood that was due to an auto accident had been very promptly restored on a late Saturday night early Sunday morning. She said she wanted to inform the Board of a good thing rather than the many complaints they sometimes receive.
WATER SUPPLY CONTINGENCY PLAN
Mel Damewood, Water Engineering Manager, presented an overview of the Memo re: Follow-up Information Regarding the Water Supply Shortage Contingency Plan. He noted that the state has a water supply shortage contingency plan that goes into effect and gives priority to rivers if in-stream flows hit a certain level. He said that for the McKenzie River that level is 850 cubic feet per second (CFS) and this constitutes a level that is 25 percent below the lowest level on record.
Stephen West, Water Management Services Supervisor, gave an overview of graphs entitled Percent of Daily Demand and System Demand By Sector/Summer and Winter. He discussed, with the aid of overhead projections, the strategic action plans to address three levels of shortage and the triggers that would instigate the implementation of the plans.
Mr. Damewood discussed the existing policies which address the issue of a water supply shortage. He highlighted a draft proposal which included staff recommendations for additions to policies for a situation in which water curtailment is necessary. He requested input on the proposed public review process.
Mr. Damewood gave a brief overview of who the "large customers" are and how much water they consume with the aid of an overhead projection. He noted that EWEB staff would be meeting with these customers during June and July to discuss potential curtailment procedures. He added that a public service campaign entitled "Slow the Flow" had begun.
Commissioner Smith encouraged staff to ensure that follow-up enforcement on a complaint basis occurred in order to voluntarily be effective. Mr. Damewood said that this program would largely rely on the good will of the customers. Commissioner Lanning expressed concern that enforcement would be problematic. Mr. West said that a situation had occurred in 1971 in which customers were requested not to use water until a problem had been remedied and that public announcements over radio and television had been effective during this incident.
Commissioner Bishop questioned the need to convene the Board in an emergency situation. Commissioner Bishop stressed the importance of timely communication with Board members during a crisis, but felt emergency action was appropriate when left to staff under the guidelines of detailed emergency plans. Vice President Bartel commented that there is wisdom in having a final arbiter that is a public entity in an emergency so that the public interest is represented. Mr. Helgeson expressed concern that the need for mandatory measures could come up abruptly enough that the board would not have time to be convened. Mr. Berggren said that there was the possibility that a quorum could not be reached. Commissioner Smith stressed that an emergency communications plan that includes the Board is necessary. Vice President Bartel agreed, stating that a conference phone call would work. Mr. Berggren suggested that a policy that would require the convening of the Board should also include a safety net to provide for the possibility of the Board being unable to be convened. Commissioner Lanning agreed that the Board should not "ham-string" staff from action in an emergency situation.
Vice President Bartel encouraged staff to address the residential nonessential use of water earlier in the season. He noted that EWEB has a more personal relationship with the larger customers and, thus, it will be easier to convey the information about the water contingency plans to them. He suggested that the public review piece be implemented soon. He also noted that it is difficult to gather many people at a public hearing in the month of August. President Anderson agreed, suggesting that holding it in September might facilitate a better turnout. Commissioner Smith encouraged staff to schedule only one open house and not two.
WATER CONSERVATION PLAN POLICY
Dick Helgeson, Water & Steam Division Director, circulated a handout entitled Water Conservation Plans for Large Customers. He cited the Water Supply Plan that was adopted in 1999. He said that the impetus for the plan came from the negotiations that had occurred with Hyundai over water usage. He stated that customers that use over 500,000 gallons of water per day do not qualify for the standard rate schedule, adding that there was a Systems Development Charge (SDC) in place that could be mitigated somewhat by a customer's willingness to reduce water consumption. He noted that Hyundai has reduced its water usage more than it agreed to.
Mr. Helgeson discussed in detail Water Conservation Plans for Large Customers with the aid of overhead projections.
President Anderson endorsed the "carrot approach", i.e. rewards for curtailment, and asked if there was sufficient staff to facilitate it. Mr. Helgeson said that this would depend on how the question of who should submit a plan would be answered. Vice President Bartel suggested that lowering the threshold of who would qualify as a large customer would provide more larger entities to work with. He encouraged staff to implement the plan before water levels drop to a critical level as opposed to implementing the plan as a result of water levels reaching a critical level.
Commissioner Smith complimented the presentation, saying that it was well-laid out, and that she thought the policy objectives were good.
Commissioner Bishop endorsed lowering the water usage levels so as to expand the field of large customers to approach about voluntary curtailment. She agreed with Commissioner Smith that the work constituted a job well done.
Mr. Helgeson asked Board Members how the curtailment plans should be handled, noting that the contracts would be brought before the Board. Commissioner Smith responded that she felt comfortable entrusting staff to handle the contracts. Vice President Bartel suggested that an appeal process may be desired by the customers that would involve Board Members.
Commissioner Bishop encouraged staff to consider rebates for residential customers as well.
Mr. Helgeson stated that he hoped to have a draft plan and resolution for Board approval in the fall.
BORROWING AUTHORITY FOR POWER SUPPLY
Due to time constraints, Board members agreed to address this agenda item on July 3, 2001.
ITEMS REMOVED FROM THE CONSENT CALENDAR
President Anderson determined that items 6, 7, and 8 would be addressed first.
Ed Case, Acting Purchasing/Risk Manager, provided legal information in response to the testimony of Mr. Hinkley. He stated that the intent of the law was to aid disabled individuals in entering into contractual agreements for work. He said that EWEB is following the intent of the law and that the law is in harmony with rules that EWEB has adopted.
President Anderson reiterated that Mr. Hinkley stated that the EWEB policies may not be following the letter of the law. Mr. Case stated that DAS is probably not doing what it is supposed to be doing (i.e. determining 'fair market value' for every product and service) because the product or service specifications/requirements, labor costs, and overheads are unique in every contract and for every region throughout the state of Oregon. Determining fair market value would be extremely difficult. Fair market value is determined on an individual contract basis.
Commissioner Smith left the meeting.
Mr. Case said that Qualified Rehabilitation Facilities (QRF) are exempt from certain contractual regulations and clarified that the intent of the law was to provide the QRFs with the work. President Anderson stated that three QRFs had submitted proposals for the work and that one had been chosen.
Commissioner Bishop expressed concern that this would become a legal liability for EWEB. She said that the state law was clear and that DAS was ignoring certain elements of the law.
Tom Buckhouse, Director of Facilities Services, stated that there are conflicting pieces of information on the requirements. He noted that if a QRF expressed an interest in any contract, an entity such as EWEB is required to negotiate with them. He said that EWEB had tried to follow the intent as it had been understood. He suggested that the Board bring the EWEB Counsel to render a legal opinion. Commissioner Lanning endorsed seeking legal counsel.
Mr. Buckhouse requested that item 7 be approved since it is different from 6 and 8 and does not involve the Oregon Statute in question.
Vice President Bartel moved, with a second from Commissioner Lanning, approval of consent calendar item 7 and to seek a legal opinion on items 6 and 8. Motion carried unanimously.
Commissioner Bishop expressed concern about the timing of the Telecom Technology consulting contract. Her concern was that a contract was being put into place before the Board made a decision whether or not to further expand the EWEB telecommunications infrastructure. Mr. Berggren said that it was not uncommon to proceed in this manner.
Bill Fletcher, Telecommunications Coordinator, stated that this contract was an extension that addressed a change of scope. He noted that the push for the contract was a result of an aggressive construction schedule.
Vice President Bartel stated that Dale Smith has provided an invaluable service. He disagreed that this issue is controversial.
Commissioner Lanning moved, with a second from Vice President Bartel, to approve consent calendar item 9. The motion carried unanimously.
Mr. Origliosso clarified that item 12 is a finalization of a decision the Board had made. He said that originally this item would have been paid out of capital reserves and the steam plant generators would have repaid the capital reserves back. He stated that the capital reserves are currently not in good enough shape to pay for closure of the project.
Vice President Bartel moved, with a second from Commissioner Lanning, to approve consent calendar item 12. The motion carried unanimously.
Commissioner Bishop recommended the following corrections to the minutes of the Work Session of May 23, 2001:
Vice President Bartel moved, with a second from Commissioner Lanning, to approve the minutes of the Work Session of May 23, 2001 as amended. The motion carried unanimously.
The meeting adjourned at 10:03 p.m.
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Assistant Secretary President