WELCOME REMARKS

President Farmer convened the meeting at 7 p.m. He said the night’s meeting was for the purpose of getting input from the community. He said there would be another public forum on March 2, 2005 that would offer the community another chance to provide comments. He said the Commissioners were present to listen to the public and not to debate the merits of a possible land sale. He said staff would be available on a limited basis to answer specific questions if time allowed. He noted that there were forms for written testimony located at the rear of the room.

President Farmer said he would offer brief answers to some of the most frequently asked questions received from the public. He said a short presentation would be offered that was a condensed version of the information that was on the EWEB website. He urged those present to make use of the website data.

What is the historical context of a possible EWEB Move?

President Farmer said EWEB had been examining the possibilities of moving its location since 1990. He noted that three years previously a site near Seneca and an old speedway sight off of 11^th Avenue had both been viewed as possible sites for relocation but site constraints had limited options for the utility and the sites had been rejected. He stressed that all of the searching for new sites had taken place well before Triad or Arlie & Company had approached EWEB for a possible land sale.

President Farmer said many of the buildings on the current site required extensive repairs. He added that without the proceeds from a land sale the price of those repairs to buildings on the site would have to be taken from funding provided by rates.

President Farmer said the Commissioners had approved a site location at the confluence of Roosevelt Boulevard and Beltline but stressed that no decision had been made by the Board to relocate operations and no contract had been signed for a land sale.

He said a sale price for the current site that was acceptable to the Board had not been established and stressed that any sales price must be enough to fund a new location without raising rates to EWEB customers.

President Farmer said EWEB did not have to move but reiterated that if no move took place then the $10 million of repairs that needed to be done would have to come from rates.

President Farmer said EWEB had hired the architect firm of WBGS to look at space and operational needs and come up with cost estimates. He said the target date for that assessment was September 2005.

Regarding how the need for a hospital in the City of Eugene affected the Board’s decision, President Farmer stressed that the Commissioners needed to make a decision that was best for the utility and could not consider the possible merits of a hospital at the current location. He noted that Triad had made a proposal that could help the Commissioners in their decision process.

General Manager Randy Berggren said there were three options for the utility to consider.

Move the entire utility to a new location

Mr. Berggren said this would involve a funding strategy that required a sale of the existing site in addition to some refinancing of existing debt. He said rates would not be affected by a move in that context. ·       

Move only field operations

Mr. Berggren said the proceeds from a partial sale and refinancing of existing debt would fund a move for field operations only. ·       

Not move at all

Mr. Berggren said this decision would require the investment $10 million plus to pay for needed repairs to the buildings on the site. He said this would come from rates as well as refinancing of existing debt.

Assistant to the General Manager Debra Smith, filling in for the Master Plan Project Manager who was ill, noted that on February 8 the Board had approved the purchase of 46 acres, after several months of due diligence work to make sure the site was appropriate for use. She noted that the due diligence had included analysis of land, groundwater, plants, endangered species, and wetlands. She acknowledged there was some traffic and access issues but stressed that staff felt they were solvable. She showed some projected costs for improving the site and noted that the total cost amounted to $1.75 per square foot. She said the chosen property was the only site out of eight others that had made it through the due diligence process.

Explaining the 30 percent conceptual design, Ms. Smith said the plan would show the basic structure, gross square footage requirements, placement of the buildings on the property and an agreed upon statement of energy measures.

Outlining the key outcomes of the 30 percent design project, Ms. Smith said EWEB would be proactive with a long-term vision of facility needs and be able to provide an accurate idea of moving costs. She said this would allow a more thorough discussion of the split operations concept.

Ms. Smith said the cost of the conceptual design project would be $792,031. She said there were a number of subcontracted services included in the price that would help the Board understand how it could best build for the future.

PUBLIC FORUM

President Farmer reiterated that there were forms available in the rear of the room for those who wanted to leave written comments.

Bob Cassidy, 1401 East 27^th Avenue, expressed his hope that there would be sufficient dialog between the public and Commissioners on the issue of selling the utility site. He said he did not want to have a hospital on the site and raised concern over blocking views of the river and increasing traffic problems.

Kathleen Deacon, 40268 Mohawk River Road, Marcola, Oregon, said McKenzie Willamette had employed her for 28 years. She said the challenge for EWEB as well as McKenzie Willamette was how best to serve constituents well into the future. She stressed the importance of being objective and focusing on the task at hand by completing due diligence. She said if it was determined that relocating all administrative and operation facilities to another site then she hoped that the current site would be sold to McKenzie Willamette Hospital. She noted that there was a need for hospital in the urban core of the City. She said McKenzie Willamette was prepared to address the issues of traffic, access, and preservation of the riparian zone in a collaborative manner. She said the EWEB site was the first choice for McKenzie Willamette.

Eugene City Councilor David Kelly (verbatim) “Thank you very much. My name is David Kelly. Thank you for taking public comment and thanks for your service and the personal sacrifice that I know that that entails for the community good. I am speaking tonight as an individual city councilor and not as a representative of the Eugene City Council, but I do want to note that the council, last year, made it our number one priority in a unanimous vote, to work for a hospital in central Eugene.

“Now you folks work for your customers, the EWEB rate payers. But, your customers are also my constituents. The same folks we are both trying to serve. Those folks want a well-managed utility, they want fair electric rates. They also want good, accessible, affordable health care. Because of the unusual combination of circumstances that bring us to this place, I would argue that, to some extent, you folks have become the guardians of health care in Eugene and Springfield. We need to continue to have two thriving, competitive, well located hospitals in this community to serve your rate payers who are also my constituents.

“With the last significant impediment to Peace Health’s construction at River Bend removed this week, many knowledgeable people believe that McKenzie Willamette Hospital will not survive at its current location. The loss of a second Hospital in this community would have a staggeringly negative impact for all of us.

“McKenzie Willamette has clearly stated, both before and tonight, that there strategy to survive and thrive is to relocate to your current site. That dovetails well with your plans that you have discussed for some years, to ultimately relocate some or all of your facilities. Sale of the site to the hospital also guarantees permanent protection of the riparian area because of the stated intent of the City of Eugene to purchase the riparian frontage.

“So, in conclusion, I urge you to continue to work with your staff, with McKenzie Willamette and Triad, with City of Eugene staff, and elected officials like me, to find a path that enables your relocation and the sale of your current property to McKenzie Willamette for their new hospital.

“Of course, you need to watch out for the interests of your rate payers first and foremost. I believe you have been put into a position of watching out for both their electric/water needs and their health care needs, and I have no doubt that you and the City government and Triad can jointly come to a conclusion that will work for all three parties and, most importantly, for Eugene residents. Thanks for your work.”

La Deane Prior, 5035 Netcar Way, said she had been an EWEB customer for 25 years and had seen EWEB do many good things for the community. She said she would like to see another hospital on the EWEB property. She acknowledged that the final decision would be up to the Eugene Planning Commission but stressed that a sale of the land would be a stimulus for the planning commission to act. She urged the Commissioners to help get a new hospital for the City.

Ron Peery, 3910 Mirror Pond Way, spoke as the Chairman of the Board of Trustees for McKenzie Willamette. He stressed that the community needed a choice of hospitals. He said the EWEB board had an opportunity to fill a void left by Peace Health by allowing a hospital on the EWEB site. He said Triad had offered the higher of two appraisals as a purchase cost for the property. He stressed the need for the hospital to be in the core area of the City. He said McKenzie Willamette was a active community the hospital would work with whatever agencies were necessary to see that the EWEB site was developed in a manner that met all of the needs of the community as well as meeting desired environmental designs. He noted that if McKenzie Willamette purchased the site, access to the river would actually be improved. He said Triad felt the EWEB property was the best site for hospital development. He urged the Commissioners not to get ‘hung up’ on the fact that McKenzie Willamette was a for-profit hospital and to remember that 20 percent of all proceeds went to Cascade Health Solutions that put the money into health care needs for the community. He stressed that if Eugene did not act, then by 2008 it would be the largest city on the west coast that did not have an acute care hospital with an emergency room.

Greg Wobbe, 2534 Emerald Street, stressed the importance of the land sale issue to the community. He raised concern over relinquishing public control over such a valuable public space. He said he especially opposed the sale of the property to an out of State Corporation. He asked for more detailed information regarding what would happen to the water rights if a sale were completed.

Mr. Berggren said all water rights associated with the site would be retained by EWEB regardless of whether the property was sold. He added that the utility would retain any necessary easements to enable that to happen.

City Councilor Bonnie Bettman, (verbatim), “Good evening Commissioners. Thank you for listening and considering our comments in your deliberations.

“I appreciate and respect your commitment to exercising due diligence in your fiduciary responsibility to EWEB’s rate payers.

“The study you have undertaken is a responsible step in that direction. I hope that while you look at the specific details of your options you will consider the broader context as well.

“There is a lot of speculation in the community about what COULD be developed at this site instead of a hospital?

“People should be asking; what kind of development or use can realistically be considered for this site if the utility moves; Or if the property or a portion of the property ends up on the open market?

“Presently the EWEB site has multiple constraints and challenges including contamination, easements, very difficult and unpredictable access due to the railroad crossing and an undesirable proximity to a highway overpass. (Undesirable if you are looking for a home but not so if you are looking for a Doctor!) In addition, the EWEB site is zoned as industrial property and is Public Land. It is not zoned for residential or commercial uses. The city has the authority and resources to mitigate those challenges but only in pursuit of a hospital.

“The City creates value in property by zoning and providing infrastructure. As it stands, the City’s elevated interest in doing so at this site is to ensure certain public objectives. Those objectives are;      ·   

• To ensure that the region has two viable health care providers,
• So that the largest concentration of the city’s population will have easy access to a full service emergency room, including lifesaving emergency surgery
• To preserve health care affordability - for public employees and the general public - by maintaining competition in the health care market.
• To ensure the broadest range of health care services are available to the community.

“Much of the discussion has focused on the incentives the City has afforded McKenzie Triad in order to achieve our stated objectives of securing an urban hospital site. But it is just as true that, regarding this site’s disposition AND relocation issues; the City’s resources and technical support can provide a substantial benefit to EWEB and its rate payers, as well. A benefit that will be forfeited without a hospital.

“McKenzie Triad has chosen this site based on many complex variables that are essential to their continued economic viability in this community. Please remember that there are people’s jobs at stake in this deliberation.

“Obviously, everyone does not agree that this is the absolute best site in the City for a hospital, some people want a park, some want a neighborhood and some want to see no change at all. It may be a challenge to locate a hospital here, but it is more challenging to locate anything else here. Especially without the full strength of the City’s support.  All things considered, I believe this location IS an excellent site for a hospital, and a benefit for our community, including EWEB’s ratepayers. I look forward to working with you on this historic project. Thank you for your time tonight.”

Zach Vishonoff, distributed written material to the Commissioners. He raised concern over possible high impact development all the way to the river’s edge. He noted that there was a courthouse neighborhood planning process where neighbors had discussed what was desired. He said what had been discussed had nothing to do with what was being suggested by the ‘planning forces’ in Eugene. He said the plan for a hospital did not address any of the visions raised by citizens. He also raised concern over the riparian area of the greenway. He said the Eugene Clinic site was a hospital site that had never been properly discussed and stressed that the site could be developed for a hospital and help downtown development. He raised concern that the Eugene City Council wanted to side step citizens desires and asked for a citizen greenway committee to examine the history of maintaining the greenway along the river.

David Atkin, 155 East 36^th Avenue, expressed his support for EWEB and McKenzie Willamette. He said Eugene would be very lucky to have the hospital relocate to Eugene.  He urged the Commissioners to consider ratepayers who needed a hospital. He said if the utility was moving at all then now would be the time to do it since it would be a win/win situation for the citizens who needed a hospital.

Mayor Kitty Piercy thanked the Commissioners for its work on the part of the community. She said the EWEB Commissioners had similar goals and responsibilities in providing the best service to the community that was possible. She said the City believed that it was in the public interest to have a hospital near the City core. She said she wanted to make sure of public access to the river and McKenzie Willamette had assured her that access to the river would be improved and would also utilize green building standards during construction. She said public access to the river was important to the City and expressed her hope that a sale of the property to McKenzie Willamette would move smoothly and swiftly.

Carol McBrian, 1875 West 15^th, reiterated the praise of EWEB’s community work. She said having McKenzie Willamette in the community would be a public benefit if EWEB decided to move. She stressed the need of the community to have a hospital near the urban core.

Kay Yannit, 1936 Kimberly Drive, expressed her appreciation of the careful consideration EWEB was going through regarding a possible move to a new location. She noted that she was an employee of McKenzie Willamette. She it made sense to plan ahead instead of waiting until the facilities were so run down that there was no choice. She said she supported a hospital on the EWEB site and said it would continue to be a public site and would provide a clear benefit to the people of Eugene.

David Rodriguez, 87984 Heather Drive, noted that there were still major issues with the new site for Sacred Heart. He said the proposed location for the new Peace Health location was located just downstream of a river meander that had strong potential for flooding and erosion. He stressed that there was a lot going on with Sacred Heart that was not being shared with the public. He said a major flood would seriously damage Peace Health at its proposed new location and noted that the EWEB site was also located on a river. He expressed his frustration that the Planning Commission and City staffs were not concerned with the flood issue.

Margaret Beals, 2755 Filmore Street, said it was a great opportunity for EWEB to move immediately and sell to McKenzie Willamette. She said she had no illusions that utility costs would not go up and remarked that costs would be higher if EWEB waited to move. She expressed her appreciation that EWEB had solicited public input on the matter.

Joseph Downing, 3050 Whitbeck Boulevard, noted that the current EWEB office space had only been built 15 years previously. He said energy prices had been increased 59 percent over the last ten years that was double the inflation rate. He said ratepayers needed a break from steady rate increases and suggested that only operation facilities move to the new location while administration could stay on the current site. He submitted written material into the record.

Candace Nelson, 361 Lombard Lane, urged the Commissioners to vote against the sale of the property to Triad. She said Triad’s offer was insufficient to cover the costs of moving the utility and noted that the construction of the federal courthouse would raise the value of the site further. She stressed that EWEB ratepayers wanted a central location to come to when dealing with the utility. She added that another value was the use of the site by the community for meetings and gatherings.

Susan Alger, 145 East 37^th Avenue, said she worked as the manager of the care management department at McKenzie Willamette. She said Eugene needed a hospital and said McKenzie Willamette had worked to meet the needs of the community. She said EWEB had a unique opportunity for a win/win situation by selling to McKenzie Willamette.

Chris Pender, 266 High Street, said the fountain on the current EWEB site was great for kids and raised concern that a new owner would take it out.

Eugene City Councilor Gary Papé, (verbatim), ‘I’ve been before you before, talking about this issue, so I don’t want to belabor the point. I’m a citizen of Eugene.  I’ve been an EWEB ratepayer, off and on, since 1948. I am also a City Councilor. I want to thank the Councilors and Mayor Piercy for appearing here and I want to echo a loud Hear, Hear to everything they said and I will try not to repeat that for you. I also, for the sake of full disclosure, want you to know that I am on the Board of Cascade Health Solutions, the successor to the McKenzie Willamette Foundation, there is no longer a foundation needed, obviously, for a full profit hospital.

“First of all, congratulations for the process you are going through. I’m proud you are doing the due diligence you should be doing for the community and the ratepayers and I appreciate Commissioner Farmer’s comments that EWEB’s job is to bring, we the ratepayers, efficient, quality, electrical service. Our job, as City Councilors, is to manage the City. One of the things we do in managing the City is manage the land use of the City under the laws of the State of Oregon. However, I would like to talk about the location. I think it is a excellent location as Councilor Bettman expressed. It’s obviously near the core, south of the river. Its close to many Eugene physician practices, which hasn’t been discussed much tonight, so there would not be an exodus if McKenzie Willamette and Sacred Heart moved somewhere else and practices will be moving with one or both of those hospitals. So, we would be able to keep physicians and physician practices in their facilities and not have a big blight of vacant specialized office space here in Eugene.

“Obviously, also, it’s very near the largest employer in Lane County and our community, the University of Oregon. Obviously, a lot of things happen during employment hours and on the job so we’re close to, not only downtown Eugene but to the biggest employer. The Bus Rapid Transit Plan will be coming close through here and the transportation and other infrastructure is already here to provide for everything except maybe the access right to the site which will need to be improved when the hospital we hope for comes in here. And finally, something that hasn’t been mentioned, but I think is important for this location, and that is that we would see 24 hour activity here. If it should happen to be something like a basket ball court, as has been discussed, then it would be dark during late hours.”

Bob Helling, 2722 Sorrel, spoke on behalf of ratepayers. He urged the Commissioners to protect ratepayers as much as possible but acknowledged that rates would increase in any event. He said the EWEB site was not the site for a hospital and remarked that the City Council and the Planning Commission should make a more thorough study of where a hospital was supposed to go. He commended the Commissioners on the purchase of its new land and said it should be used for a new operations facility.

Chris Walton, 1722 Sweetbriar Street, said the decision before the Board was more complex than most people knew. He said the medical community was excited about McKenzie Willamette moving to the City. He said he had moved to the City because of good education and medical care. He noted that he was an orthopedic surgeon and stressed that he did not want to see people having to drive to the new Peace Health location to have follow up care when it could happen in downtown Eugene. He added that a large facility would help to revitalize downtown.

Jay Chappell, 86270, said both McKenzie Willamette and Sacred Heart were outstanding organizations. He said he worked as a doctor for both Peace Health and McKenzie Willamette. He stressed that Eugene would still need a community hospital if Peace Health moved to its proposed new location. He said the new facility would be ‘spectacular’ but stressed that it was a five star hotel that would have to be paid for. He remarked that the local community paid some of the highest rates in the State for cardiovascular care. He added that the new Peace Health facility would not serve as a community hospital and said McKenzie Willamette would fill that role very nicely. He raised concern that people needing urgent care would be forced to go all the way to the new Peace Health location. He stressed Triad’s commitment to being good community citizens.

Kevin Matthews, Friends of Eugene, PO Box 1588, Eugene, spoke as president of Friends of Eugene. He commented that much of the testimony that evening came from people representing owners or employees of a company that had tendered an offer for the EWEB property. He raised concern that this was a conflict of interest.

Mr. Matthews remarked that the Eugene City Council and Planning Commission, in contradiction to their own standing master planning practices, were advocating major siting decisions without having had a public forum or hearing on the significant components. He said the question of the hospital was not relevant to the Board’s fiduciary duties and added that the stewardship of the current property was part of holding ratepayers harmless. He said the value of the property was worth considerably more than the costs of relocation.

Nick Urhausen, 2858 Warren Street, raised concern that the accesses made the current EWEB site a poor location for a hospital. He said the decision before the Board was a political decision. He also raised concern over flooding and having two hospitals being located on a river. He remarked that the hospital should move to the recently purchased Roosevelt location since it was accessible from four different directions.

Chris Althouse, 325 Marche Chase Drive, thanked the Board for helping to make Eugene the place that it was. He said EWEB had one objective, to protect the ratepayers.  He said it was up to the City to decide what was developed on the property. He stressed that the highest offer for the property should be taken.

Jack Roberts, 2330 Park Grove Drive, said he supported a hospital on the current EWEB site. He said a change in location of the utility was needed to maintain efficient operations. He urged the Board to consider the totality of every offer for the land. He said the worse thing that could happen would be considering a move 20 years in the future.

David Hinkley, 1350 Lawrence, said the bottom line for the utility was that there was a $25 million to $50 million between the highest offer for the land and what the land was actually worth. He said it was one thing to move if someone wanted to pay what the land was worth but different if the total costs were not covered.

Mr. Hinkley said the new location was good for operations but was bad for administration because Lane Transit District did not service the area. He suggested splitting the utility and just moving operations to the new location.

Janet O’Bryant, 85 North Madison Street, said she was opposed to the sale of the property. She said she was disappointed in that there was no consideration of the raised rates in recent years. She said there had been consideration of low income people and how they would pay for increases in rates. She stressed the importance of keeping the ratepayers in mind when making a decision. She raised concern over the testimony of all of the McKenzie Willamette hospital employees offering testimony as public comment.

Joe Long, 278 Roan Drive, said one of the reasons for selling the property was the repairs that were needed. He said he had seen repairs that would have been inexpensive to fix that had been let go too long. He said the current location was an excellent one and remarked that spending millions of dollars to rebuild would eventually come back to ratepayers. He said the utility should fix what needed to be fixed and stay at the current location.

Joanne Johnson, Saint Lucia Street, said Triad was made up of people in the community. She said the longer it took to make a decision the easier it was for Peace Health to put McKenzie Willamette out of business. She commented that leaving the administration portion of the utility on the site and only moving operations would be like selling a home with a condition that you could continue to live there.

John Saemann, 1775 Atkins Street, said he looked to the Commissioners to address the issue for which it was concerned. He said the Board was concerned with running the utility and maintaining affordable rates. He noted that the City Council could decide any question of a hospital. He remarked that the current building was 17 years old and had been built to last for 50 years. He noted that EWEB should look at Springfield Utility Board and find out why their rates were lower.

Jim Hale, 1715 Linnea Avenue, expressed his preference to move the utility. He said a more central location should be found even if it had more initial costs and there was more time involved in acquisition. He stressed the importance of a more centrally located site for future operations. He said he would prefer to see McKenzie Willamette get the site so another hospital would be available to the community.

President Farmer asked the Commissioners for their comments.

Commissioner Simpson expressed his appreciation for those who had attended the meeting. He stressed that he needed to hear from the pro-hospital camp in order to make a balanced and informed decision.

Commissioner Lanning expressed his appreciation of the comments made. He expressed a hope that more input would be received.

Commissioner Menegat said the Board was progressing through the 30 percent design process so an informed decision could be made. He said the process would also provide cost estimates for a move and a possible land sale.

Vice President Bishop expressed her appreciation of the public testimony. She stressed that, contrary to Councilor Kelly’s comment, she was not a guardian of health care in the Eugene area. She said that was not what she was elected to do. She said the idea of the City purchasing the riparian area of the property made no sense to her since it was already public property.

Vice President Bishop asked staff to address zoning questions about the EWEB property. She questioned what would happen to the zoning of the property if it was sold to a non-public business.

Commissioner Bishop said the offers that had come in for the property, to date, were much too low. She stressed that a decision had not been made to sell. She stressed that Triad’s offer was not enough to cover the costs of a move. She urged people to keep coming to public meetings and offering input.

President Farmer also expressed his appreciation of those who attended the meeting. He added his appreciation of the other Board members. He said it would be premature to draw conclusions until the end of the 30 percent design work.

Property Manager Mark Oberle addressed Commissioner Bishop’s question on zoning. He said most of the tax lots making up the property were zoned public lands. He said this would have to change if the property were sold to a non-public entity.

The meeting adjourned at 9:30 p.m.