Board Members Present: Dorothy Anderson, Peter Bartel, Susie Smith, Patrick Lanning, and Sandra Bishop.
Others present: Randy Berggren, JoAnn Anderson, Tom Buckhouse, Dick Helgeson, Marty Douglass, Cathy Bloom, Jim Origliosso, Roseanna McArthur, Dick Varner, Jim Wiley, and Krista Hince of the EWEB staff; Ruth Atcherson, City of Eugene Minutes Recorder:
AGENDA REVIEW
President Anderson called the meeting to order at 8:07.
It was decided to pull Agenda No. 11 2001 Audited Financial Statements from the agenda due to time constraints.
Commissioner Bishop requested that the Public Input segment of the meeting be moved to Agenda No. 2 as the Regular Session of the EWEB Board had convened late. Board members agreed to hear the public input next.
PUBLIC INPUT
Ed Kemp, 38708 Nature's Garden Street, Springfield, stated that he had been present at a staff presentation at the Leaburg station regarding the draining of the Walterville Canal. He said that this would have a profoundly negative impact on approximately a dozen farmers. He added that the water has been depended upon for several generations for farming and also for the wells in the area. He felt that even if EWEB did not have a legal responsibility to the residents there, the utility did have a moral and ethical responsibility. He encouraged the utility to look into the possibility of forming diversion canals. He felt that it would behoove the Board to ameliorate the situation.
Commissioner Anderson responded that the Board was aware of the situation and that it had never been a "right" of the farmers to have that water.
Mr. Kemp reiterated his concern that the drainage of the canal would lower the water table to the point that it would impact the wells of the residents. In response to Commissioner Smith, he said that the wells range from 30 to 100-plus feet deep.
Commissioner Anderson requested staff to provide more information to the Board regarding the situation. Mr. Berggren agreed to bring more information to the Board.
CONSENT CALENDAR
MINUTES
BUSINESS SERVICE AGREEMENTS
2. Barrett Business Service and Personnel Source - Customer Service - Customer Services Division - $45,000
3. Umatilla Project Development Agreement Amendment - Electric Division. Authorize the GM to sign agreement
4. Lane County, Oregon - Reach Program; Universal Service Program; Rapid Assistance Program - Customer Service - $140,000; $51,000; and $100,000 respectively
5. PeaceHealth - Employee Assistance Program - Human Resource - Corporate Services - $20,00/year for two years
OTHER ITEMS
6. Legislative Letters Related to the Proposed Federal Renewable Portfolio Standard - Electric Division.
Commissioner Bishop, seconded by Commissioner Lanning, moved to approve the consent calendar. The motion passed unanimously, 4:0.
ITEMS FROM BOARD MEMBERS
President Anderson reported that she had attended a meeting of the Eugene Budget Committee. She said that it did not appear that there would be any money available to the energy assistance plan as the funding had already been allocated. Ms. Bishop felt that there had been a lot of confusion regarding the numbers that had been used, as the utility employs annual figures and the city employs fiscal year figures. She advocated writing a letter to the Budget Committee thanking them for the contribution that they are making and requesting that the extra million that has been netted as a result of the rate increase be applied to the Low Income Energy Assistance Plan (LIEAP).
Commissioner Smith commented that it was important to make them aware of the cuts to LIEAP that the Board is being forced to consider.
Commissioner Lanning stated that he has had some discussions with Mr. Berggren regarding whether it is appropriate to require rural rate payers' money to be applied to CILT payments.
Continuing, Commissioner Lanning wished to commend the linemen for the many hours of overtime worked in the aftermath of the big windstorm. He said that he had talked to a group of linemen after the last meeting who had just completed their fifth 18-hour day. He noted that they had been quite exhausted.
CORRESPONDENCE
Mr. Berggren reminded the Board that there will be a joint meeting with the City Council at 5:30 p.m. on February 25, 2002 in the Council Chamber. Commissioner Smith noted that she may miss part of the meeting.
Mr. Berggren confirmed that there will be a Board Governance meeting held at 4:30 p.m. on February 26.
Mr. Berggren said he had sent a high level summary of the storm and outage data to the members of the Board. He noted that an internal debrief was still underway.
Mr. Berggren stated that Mr. Varner has sent out a reminder that the date of the steam forum has been reestablished for February 20 and that it will be held in the Training Room of the EWEB utility.
PRESIDENT'S ANNUAL MESSAGE by Dorothy Anderson
"Overall, 2001 was a year many of would like to forget. A volatile and irrational energy market last winter and spring, coupled with the worst drought on record, led to unprecedented rate increases. Meanwhile, the economy faltered, putting thousands of people out of work in Lane County just as higher electric bills started arriving in mail boxes. All of this was a recipe for a large number of dissatisfied customers.
"A City Council, also strapped for funds, balked at contributing any of its 2001 contributions-in-lieu-of-tax windfall to help support EWEB's low-income energy assistance programs. The Bush administration also refused to release Congressionally approved funds to help lower-income residents cope with higher energy bills, further adding to the problem.
"The rate increase and the poor economy resulted in a very challenging year for EWEB's Customer Service Department. Deluged with calls from confused and unhappy customers, our Customer Service Representatives deserve a lot of sympathy and kudos. The number of calls often zoomed beyond 1,000 a day. Our Board owes them a tanker-ful of thanks for hanging in there and adroitly dealing with our valued customers. Also deserving applause are the Public Affairs staff and other hardy souls on the third floor for pitching in to help.
"It was a year of mixed blessings for the Energy Management Services Department. Conservation has certainly become the "in" thing to do (at last!), but it has kept our staff hopping to respond to the increased demand from customers for energy efficiency and conservation assistance. They, too, are to be congratulated for their work helping customers in trying times.
"One of our most valuable resources at times like these are those staff who interact with customers out in the field - the meter readers, tree trimmers, line technicians, work crews and others who are out there in all kinds of weather and at all hours of the day to ensure a reliable supply of energy for our customers. They are our best advertisement for a utility that cares.
"Deregulation, touted as the path to lower energy prices, turned out instead to be an opportunity for Enron and other greedy market manipulators to make millions at the consumer's expense. It will take some time to recover from this "energy hangover," which means that 2002 does not promise to be much better on the financial front. The economy is still faltering, and even though energy spot market prices have plummeted from last year's unprecedented highs, EWEB - as many other utilities in the region - has debts to pay off from high energy costs incurred 2001. The Bonneville Power Administration, which was caught having to pay the same high price for energy as the rest of us, is threatening to raise its rates again this year in an attempt to get its financial house in order.
"For several years now, the Board and staff have been working to cut administrative costs. Even though we have made progress, the current financial situation means we will have to search even harder and cut more deeply.
"This is a time for sacrifice, not new initiatives. Many of our customers are facing electric bill increases that are forcing them to make hard choices about how to spend less. We, too, must make the same hard choices. Much as we value the work or our staff and wish to reward it, even salary increases will have to be far less than usual.
"However, although cuts and postponement of work projects are the order of the day, we must not damage the integrity of this utility. We must muster the same creativity and innovation that have made EWEB's staff the best in the utility world and apply these skills to resolving our current financial difficulties.
"But, I do not wish to end on such a depressing note. There is much to be proud of and hopeful about. EWEB is not stagnating.
GROUNDWATER BOND RESOLUTION
Fiscal Services Supervisor Dick Varner stated that the Board was going to be presented with a resolution to initiate a bond authorization. He noted one minor change, that in looking at the various resolutions that have passed, there had been an inconsistency in the naming of the projects. He recommended changing the name to the Confluence Wellfield Project rather than the Groundwater Project.
Mr. Varner said that the project was spawned out of the water resource plan and that this was the stage in which funding needed to be lined up for the initial well-drilling. He noted that $5 million is the estimate for the first phase of the next four to five years of activity.
Continuing, Mr. Varner stated that, should the Board approve the resolution at this meeting, a similar resolution would then be presented to the City Council of Eugene. Once approved by the council, the requisite published noticing followed by a 60-day waiting period will occur. He stated that, should there be no request for an election, the utility would then have the legal authority to issue bonds.
PUBLIC HEARING ON GROUNDWATER BOND RESOLUTION
President Anderson opened the public hearing on the groundwater bond resolution.
There was no public testimony.
President Anderson closed the public hearing.
GROUNDWATER BOND RESOLUTION
Mr. Varner requested the approval of the resolution requesting the city to authorize issuance of $11 million in revenue bonds, with the amendment of the title of the resolution in that it will hereafter be referenced as the Confluence Wellfield Project.
Commissioner Bishop, seconded by Commissioner Smith, moved to approve the resolution with the amended title, now the Confluence Wellfield Project, to accommodate bonding under ORS 288.825.
Commissioner Bishop commented that the Confluence Wellfield Project is one example of the excellent management on the part of the staff of EWEB. She felt that this demonstrates the continuous work that the staff of the utility is doing to keep "lights on and the water flowing."
The motion passed unanimously, 4:0.
Commissioner Bishop left the meeting.
ANNUAL BENCHMARK SURVEY/CUSTOMER SURVEY RESULTS
Lance Robertson, Communications Coordinator, provided an overview of the Annual Benchmark Survey, noting that the survey had been conducted by Lindholm Research in January. He added that the survey was conducted prior to the windstorm. He speculated that the results would likely have been different had it been conducted more recently.
President Anderson commented that the survey results reflected that much information was passed on via the inserts that customers receive in their bills and, as such, the inserts are an effective mode of information dispersal.
President Anderson advocated disseminating the information regarding the cost containment cuts that EWEB is deploying in a larger forum. Mr. Douglass responded that there will be more coverage by The Register Guard. He predicted that there would be a story regarding the discussions that were occurring at this meeting in the next issue of the newspaper. Mr. Berggren noted that the cost containment issue has to do with the power rates and that containing power costs would greatly aid the EWEB staff in this endeavor.
Commissioner Lanning commented that he would rather see survey results from when the utility is at its "worst," i.e. just after having received several high bills due to the rate increase. Mr. Robertson responded that customers were polled after having received two or three higher bills.
The meeting adjourned at 8:58 p.m.
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Assistant Secretary President