Board Members present: Dorothy Anderson, Peter Bartel, Susie Smith, and Sandra Bishop. Commissioner Patrick Lanning was excused.
Others present: Randy Berggren, JoAnn Andersen, Mark Freeman, Roseanna McArthur, Tom Buckhouse, Dick Varner, Jim Wiley, Jim Origliosso, Dick Helgeson, and Krista Hince of the EWEB staff; and Joe Sams, City of Eugene Minutes Recorder.
President Anderson called the Regular Board Meeting of the Eugene Water & Electric Board order at 7:30 p.m.
AGENDA CHECK
There were no changes made to the agenda.
CONSENT CALENDAR
1. Approval of Minutes: October 2, 2001 Executive Session, and October 16, 2001 Work Session
Business Service Contracts
2. R.W. Beck - Strategic Planning - Corporate Services - $12,000
3. Clark County PUD Joint Processing Center - Lockbox Intergovernmental Agreement, (IGA), - Customer Service - $662,950 for five years
4. Waterstop NW - Transmission Pumping & Storage - Water Division - Amendment # 2 to Contract 1026-2001 - $7,668.96
Bid Award
5. Okonite Company - Store Items: 15 KV EPR-Insulated Primary Distribution Cable - Electric Division - $667,000 per year
Vice President Bartel, seconded by Commissioner Smith, moved to approve the items on the consent calendar.
President Anderson pulled the minutes of the October 16, 2001, Work Session.
The remaining items on the consent calendar passed unanimously.
ITEMS FROM BOARD MEMBERS
Vice President Bartel commented that he had seen the new design of the federal courthouse at a Planning Commission meeting and the preferred design of the new federal courthouse included a part of EWEB's property.
In response to a question from Commissioner Smith regarding whether the preferred design was still just a vision or a completed land use plan, Mr. Bartel said that, eventually, the design would be a land use plan.
In response to a question from Commissioner Smith regarding whether EWEB was going to be zoned off of its property, Vice President Bartel said it was an informational item for the Planning Commission.
Commissioner Smith suggested a letter stating that EWEB had not completed its master plan work and that the utility might or might not move.
Vice President Bartel commented that just the transportation element of the preferred plan was very complicated and that EWEB should just move on with its work.
Commissioner Bishop asked for a discussion on election of officers in January.
CORRESPONDENCE
General Manager Randy Berggren said the letter of dissatisfaction to the Chamber of Commerce had been signed by President Anderson and sent.
Mr. Berggren noted that the Board redistricting process was completed.
In response to a question from Commissioner Bishop regarding what would happen to the Commissioners that had their districts changed, Mr. Berggren said they would finish their terms and then leave the Board.
Mr. Berggren noted that the following Monday would begin a customer survey on the tiered rate structure.
Mr. Berggren noted that the Telecom item had been pulled from the December 18, meeting.
PUBLIC INPUT
Jeffery Bogle raised concern over the increased rates affecting the local economy. He stressed the difficulty of passing his added costs on to the customer. He added his concern that people would not be able to patronize his restaurants.
Vice President Bartel said the increased rates had not been an easy thing to do. He stressed that it was a financial necessity for the utility.
President Anderson noted that tiered rates helped to mitigate the impacts of the rate increase and stressed that less use of electricity put customers into a lower rate tier.
2002 WORK PLAN AND BUDGET
Dick Varner, Fiscal Services Supervisor, provided a presentation on the 2002 work plan and budget. The presentation included:
1. Removal of electric rate increase assumption and corresponding Contributions in Lieu of Taxes, (CILT)
2. Reflection of steam rate action of November 20, 2001
1. Preferred Options List
2. Other Viable, but not preferred, Options
3. Items Not Included List
Mr. Varner said staff recommended approval of the budget as presented with no assumption of further rate actions.
In response to a question from Commissioner Smith regarding debt service timing, Mr. Varner said there was no set time to pay off the principle. He said the short term commercial paper could be rolled over up to seven years.
In response to a question from Commissioner Smith regarding how the utility's fleet should be managed, Mr. Origliosso said the fleet would be managed the same but would be accounted for differently.
In response to a question from Commissioner Bishop regarding the Other Options list, Mr. Berggren confirmed that these were options not recommended by staff.
Regarding changes in the budget proposal, Commissioner Smith commented that eliminating CILT payments would negatively impact the entire community. She stressed the importance of thinking beyond the utility's needs.
President Anderson also raised concern with eliminating CILT to Eugene.
Vice President Bartel raised concern with an additional rate increase.
Commissioner Bishop recommended keeping the CILT option on the table. She stressed the importance of clearly defining "surplus earnings" and reviewing the wording regarding CILT in the State Statute. She stressed the need of the utility to play a fair role in the community.
President Anderson expressed a desire to keep school grants in the budget. She maintained that it enhanced EWEB's community standing.
Mr. Varner called for Board ideas that would add to the options in the presentation. Board members offered the following ideas:
Mr. Berggren noted that early retirement options usually included a severance package that eliminated any financial benefit to the utility.
Commissioner Smith suggested eliminating the Other Options category as it was presented by staff.
President Bartel was in favor of keeping all options on the table to be reviewed.
Commissioner Bishop suggested removing the options of selling the Midgely Building and the selling and leasing back some of the utility facilities.
After discussion there was general consensus to keep the Other Options list to be reviewed.
PUBLIC HEARING ON THE 2002 WORK PLAN AND BUDGET
President Anderson opened the public hearing. Seeing no one wishing to speak she closed the public hearing and moved the meeting on to the next agenda item.
2002 WORK PLAN & BUDGET
In response to a question from Commissioner Bishop regarding what would happen if no action was taken that evening, Mr. Varner said action was needed by January 1, 2002.
There was general consensus to take action at the December 18, meeting when Commissioner Lanning was present.
ITEMS REMOVED FROM CONSENT CALENDAR
President Anderson asked for a clarification to the October 16, Work Session discussion regarding surplus earnings.
The meeting adjourned at 9:50 p.m.
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Assistant Secretary President