Board Members present: Commissioners Dyer, Bishop, Anderson, and Smith. Commissioners Bartel was excused.
Others Present: Randy Berggren, JoAnn Andersen, Ken Beeson, Tom Buckhouse, Jon Cunningham, Marty Douglass, Kathy Grey, Dick Helgeson, Everett Jordan, Dave Koski, Roseanna McArthur, Mat Northway, Jim Origliosso, Scott Spettel, Dick Varner, Pat Ventura, Debra Wright, and Krista Hince of the EWEB staff.
President Dyer called the Regular Board Meeting of the Eugene Water & Electric Board (EWEB) to order.
AGENDA CHECK
President Dyer determined that there was consensus to approve the agenda, as written.
MINUTES
President Dyer noted that items presented for approval on the Consent Calendar included the following:
Vice President Bishop moved, seconded by Commissioner Anderson, to approve the Consent Calendar, with the exception of approval of the March 7, 2000, Special Board Meeting minutes. The motion passed unanimously.
ITEMS FROM BOARD MEMBERS
Vice President Bishop expressed appreciation to Commissioners Anderson and Bartel for their work on the Telecommunications Ballot Measure.
Noting that April 22 is Earth Day 2000, Commissioner Smith requested a summary of planned events and possible opportunities to talk about EWEB's Resource Plan and issues of sustainability. She requested that discussion of this matter be added to a future meeting agenda.
CORRESPONDENCE
General Manager Randy Berggren reminded the Board that EWEB's retirement banquet was scheduled for April 28 at the Valley River Inn.
Mr. Berggren announced that Electric Division Director Garry Kunkel will retire from EWEB on June 30.
Mr. Berggren announced that IBEW has re-filed for representation. He said EWEB would not likely oppose the bargaining unit, but would allow the issue to go to election.
Mr. Berggren reviewed draft agendas for the upcoming Work Session and Board Meeting.
PUBLIC INPUT
There was no public input.
AUDITED 1999 FINANCIAL STATEMENTS
Referring to a memorandum, copies of which were included in the meeting agenda packet, PriceWaterhouse representatives Don Irving and Shaun Holm summarized the financial statements and addressed a number of clarifying questions from Commissioners.
PURCHASING EXEMPTION FOR POWER RELATED FINANCIAL LEASING
Referring to a draft resolution authorizing exemption from competitive bidding process for financial instruments related to the procurement of electric power, copies of which were distributed to Commissioners, EWEB Purchasing/Risk Manager Debra Wright requested Board approval of the resolution.
Vice President Bishop moved, seconded by Commissioner Anderson, to approve the resolution authorizing exemption from competitive bidding process for financial instruments related to the procurement of electric power. The motion passed unanimously.
TELECOMMUNICATIONS DEVELOPMENT
Referring to a series of overhead displays, copies of which were distributed to the Board, EWEB Purchasing/Risk Manager Debra Wright and Telecommunications Project Manager Ken Beeson presented an overview of the goal; time line, choices, and next steps of the Agency Fiber Leasing element of EWEB's Telecommunications Project Development. Commissioners asked a number of clarifying questions.
The Board discussed the question of whether EWEB's policy against cross-subsidization of customer rates would apply to the leasing of dark fiber.
Commissioner Anderson inquired as to whether the franchise fee was lower for public entities. Mr. Berggren said he doubted that the City could discriminate based on whether an entity is public versus private.
Mr. Beeson said Choice 3, "Lease broadband capacity at market-driven rates," offers the most cost-effective choice for all parties. In addition, he stated he thought it could be implemented within the next 6-8 months to serve the needs of the various agencies.
President Dyer inquired as to how wireless technology might impact the desirability of dark fiber leased by EWEB. Mr. Berggren said wireless is currently viewed by EWEB as a complementary technology; however, the question of whether wireless technology will replace dark fiber has yet to be answered.
MISCELLANEOUS FEES
Referring to a memorandum entitled "Recommended Updates to Miscellaneous Fees," copies of which were included in the meeting agenda packet, Fiscal Services Supervisor Dick Varner explained that, based upon the results of the recent cost of service analysis, staff is proposing updates to fees and charges related to 1) customer service; 2) electric temporary service installation charges; and 3) water charges. Referring to a series of overhead displays, copies of which were distributed to the Board, Mr. Ventura presented a brief overview of the proposed fee/charge updates.
Commissioner Smith said that while she supported the proposed fee/charge updates, she would like staff to provide the Board with a summary of fees/charges of other utilities as a means by which to establish benchmarks. She said benchmarks assist the Board in justifying increases such as these.
President Dyer asked the Board to reconsider the Tampering Charge from $50 to $100 per occurrence to increase that amount to $500. He felt that having $100 tampering fee was too low for stealing power. The other Commissioners agreed.
With regard to the proposed updates to fees and charges related to Customer Service, Vice President Bishop suggested that the Board adopt, as separate items, 1) the proposed fee updates related to Electric Temporary Service Installation Charges and Water Charges; 2) the proposed fee updates for After Hours Reconnects and Unhonored Checks; and 3) the Tampering Fees.
Vice President Bishop moved, seconded by Commissioner Anderson, to approve the proposed fee/charge updates related to Electric Temporary Service Installation Charges, Water Charges, and Customer Service, with the exception of the Tampering Charge Fee update. The motion passed unanimously.
Vice President Bishop moved, seconded by Commissioner Anderson, to adopt a Tampering Fee of $500, as opposed to staff's recommendation of $100. The motion passed unanimously.
With regard to the proposed fee/charge adjustments related to After Hour Reconnects and Unhonored Checks, Vice President Bishop said she could not see implementing the increases prior to the implementation of EWEB's Universal Service Program which would provide assistance to low-income customers.
Commissioner Anderson moved, seconded by Commissioner Smith, to approve the fee/charge adjustments, as proposed by staff, related to After Hour Reconnects and Unhonored Checks.
Commissioner Anderson noted that door-hangers are now distributed to customers prior to disconnection of their service. She said it was her understanding that EWEB was now receiving 90 percent of its collections.
Commissioner Smith concurred with Vice President Bishop's comments concerning the timing of the proposed fee increase in relation to implementation of EWEB's Universal Service Plan.
Commissioner Smith suggested revisiting the After Hours Reconnects and Unhonored Checks proposed fee adjustments in June, after the Universal Service Plan has been presented to the Board.
Commissioner Anderson withdrew her motion.
Vice President Bishop moved, seconded by Commissioner Anderson, that the proposed fee adjustments related to After Hours Reconnects and Unhonored Checks be considered during a June Board Meeting. The motion passed unanimously.
UMATILLA PROJECT
Referring to a memorandum entitled "Umatilla Project," copies of which were included in the meeting agenda packet, Mr. Berggren reported that since the Board's last discussion concerning the project, EWEB received an unsolicited letter from the Tribes expressing a continued desire to work with EWEB. He said they have invited the Board to schedule a joint meeting.
Mr. Berggren stated that based upon previous Board discussion regarding this matter, it was his belief that EWEB's potential responses were, as follows: 1) tell them that EWEB is not interested in executing a Memorandum of Understanding (MOU), and decline a meeting; 2) tell them EWEB is interested and will meet with them; or 3) tell them EWEB may be interested at a later date and is willing to participate in a joint meeting.
Treasurer Jim Origliosso presented a brief overview of the potential benefits, to both EWEB and the Tribes, of participating in the Umatilla Project. In addition, he reviewed the provisions of the proposed MOU.
Commissioner Anderson said she was not prepared to make a decision regarding the Umatilla Project until she was able to review additional information. Commissioner Anderson requested information regarding environmental impacts, time line, staff commitment, costs, and the feasibility of economic development in Umatilla County in relation to the proposed project.
Commissioner Smith said she had mixed feelings regarding the proposed project. She said she was uncomfortable with the fact that the Board has "unfinished work" in terms of the Resource Plan. In addition, she said she was uncomfortable with EWEB's preparedness to move forward with a project of this magnitude given EWEB's other priorities, commitments, and projects that are currently underway.
Commissioner Smith said she wondered whether a local project might be of more benefit to the citizens of Eugene. She stated that given her uncertainty as to where in the Resource Plan this project fits, she would prefer that EWEB communicate to the Tribes that the utility may be interested in the future and will participate in a joint meeting.
Commissioner Smith stated that if EWEB does move forward with this project, she would like the project team to include a representative of sustainability interests. In addition, she said she would be more comfortable with the MOU if language regarding the development phase was deleted.
President Dyer expressed concern about forfeiting a significant opportunity by continuing to delay a decision on this matter. He said he did not view the MOU as a significant commitment by EWEB. Noting that he viewed the project as beneficial to the Tribes, President Dyer said he was supportive of staff moving forward with preliminary work.
Vice President Bishop stated that the Tribes have a strong environmental ethic, as demonstrated by past decisions, and are seeking a quality partnership by which this project can be completed in alignment with those ethics. She said she views this decision in the context of maintaining a relationship with the Tribes, regardless of whether EWEB elects to participate in this particular project.
Mr. Berggren said he would like to notify the Tribes of EWEB's intentions within the next month; however, he said he would explore with representatives of the Tribes the possibility of delaying EWEB's decision. He said he would update the Board during its next meeting.
ITEMS REMOVED FROM CONSENT CALENDAR
Referring to page 9 of the March 7, 2000, Special Board Meeting minutes, Commissioner Anderson requested that paragraph 2 be amended to read: "Commissioner Anderson requested that the motion be amended to state that the issue concerning University of Oregon and Willamette Industries rates be held over to the next Board Meeting. Vice President Bishop accepted the proposed amendment."
Referring to sentence 1 of paragraph 4 on page 10 of the March 7, 2000, Special Board Meeting minutes, Vice President Bishop requested that "unfavorable" be replaced with "legal."
Vice President Bishop moved, seconded by Commissioner Anderson, to adopt the minutes of the March 7, 2000, Special Board Meeting minutes, as amended. The motion passed unanimously.
The meeting adjourned at 10:35 p.m.
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Assistant Secretary President