Board Members present: Mike Dyer, Sandra Bishop, Dorothy Anderson, and Susie Smith. Commissioner Peter Bartel was excused.
Others Present: Randy Berggren, JoAnn Andersen, Ken Beeson, Cathy Bloom, Terry Bequette, Tom Buckhouse, Marty Douglass, Mel Damewood, Cathy Hamilton, Garry Kunkel, Kris Kendall, Dick Helgeson, Libby Henry, Roseanna McArthur, Mitch Postle, Laurie Power, Brenda Sirois, and Krista Hince of the EWEB staff; George Russell, Chris Pryor, Charles Biggs, Tom Bowerman, Win Calkins, General Council, and various members of the public; and Kim Kunkel, Minutes Recorder.
President Dyer called the Regular Board Meeting of the Eugene Water & Electric Board (EWEB) to order.
AGENDA CHECK
Vice President Bishop requested that item 4 be presented prior to item 3.
APPROVAL OF CONSENT CALENDAR
President Dyer noted that the items presented for approval on the Consent Calendar included the following:
3. Oregon Armored Service--Cash Accounting, Customer Services
Vice President Bishop requested that the May 15, 2000, Work Session and Special Board Meeting minutes be pulled from consideration.
Vice President Bishop moved, seconded by Commissioner Anderson, to approve the Consent Calendar, with the exception of the May 15, 2000, Work Session and Special Board Meeting. The motion passed unanimously.
CORRESPONDENCE
Mr. Berggren reviewed a number of informational items highlighted in the Board Meeting agenda packet, including:
Mr. Berggren reviewed draft agendas of the June 20 Work Session, Executive Session, and Special Board Meeting.
ITEMS FROM BOARD MEMBERS
Vice President Bishop requested a legal review of the "proper" use of E-mail between Board members to ensure that the Public Meetings Law is not violated.
Vice President Bishop said an initiative issued by Bill Seizemore could have a profound effect on EWEB in terms of financing. She said EWEB ought to take an aggressive stance and educate consumers in Eugene as to how the initiative will impact EWEB and the community.
PUBLIC INPUT
Charles Biggs, 2405 Willakenzie #1, inquired as to whether the Willamette River main stem was eligible for McKenzie Water trust funds, donated by EWEB.
Commissioner Anderson said the land trust was applicable only to the McKenzie River, as the McKenzie River is the community's source of drinking water.
Mr. Biggs suggested that EWEB take into consideration, during its Groundwater Exploration Study, the fact that the proposed well sites were located in an area identified to be at high risk for damage should an earthquake occur.
Chris Pryor, representing the District 4-J School Board, spoke in favor of agenda item 8: Public Network for 4J Schools. He said local children would benefit tremendously from access to and utilization of current technology that would be available as the result of the proposed public network project.
George Russell, School District 4J Superintendent, expressed support for the proposed Public Network for 4-J Schools project.
MCKENZIE RIVER LAND TRUST GRANT AWARD
Referring to a memorandum and attachments, copies of which were included in the meeting agenda packet, EWEB Environmental Manager Laurie Power requested Board approval of a resolution that would approve EWEB's agreement with the McKenzie River Trust and approve the agreement with Oregon Community Foundation. She said staff further recommended approval of a budget amendment to authorize $500,000 from capital improvement reserves (consent calendar item).
Commissioner Anderson expressed support for the proposed resolution. She said she did not think it appropriate for an EWEB Board member to serve as an EWEB Trustee.
Commissioner Smith expressed support for the proposed resolution, citing the ability of the resolution to assist the utility in preserving and restoring fish species and protecting the riparian area.
Vice President Bishop requested that the 3-member Trustee format be reviewed after one year. Commissioner Anderson suggested that an annual report be required. Ms. Power said an annual report would be submitted. The Board agreed to review the 3-member Trustee format after one year.
Vice President Bishop moved, seconded by Commissioner Anderson, to approve the resolution authorizing the agreement with the McKenzie River Trust and approving the agreement with the Oregon Community Foundation. The motion passed unanimously.
TELECOMMUNICATIONS PROJECT PHASE II STATUS
Referring to information distributed to the Board, EWEB Telecommunications Project Manager Ken Beeson presented a brief overview of the status of EWEB's Telecommunications Project, Phase II.
Mr. Beeson reviewed the Phase II schedule, as follows:
PUBLIC NETWORK FOR 4J SCHOOLS
Referring to a memorandum entitled Dark Fiber Lease for 4J Schools, copies of which were included in the meeting agenda packet, EWEB Purchasing/Risk Manager Debra Wright recalled that EWEB has been engaged in discussion with the 4J School District for many months concerning the provision of some type of band width for public school use. She said the discussion has focused on the possibility of licensing dark fiber at a "public agency" rate which might be in the $35 to $40 per fiber mile per month range.
Ms. Wright said applying that rate to four fibers over the rings that would be required to connect the five sites resulted in a cost to 4J which approached $100,000 per year. Ms. Wright said this does not include the cost of lighting the network or of building the lateral to the schools.
Ms. Wright stated that, given 4J's financial restrictions, the school district engaged in discussions with Chambers Communications Corporation regarding a possible role for Chambers in the development of a lit school network. She said a scenario was developed which includes EWEB licensing four strands of dark fiber to 4J at a minimal cost. She said Chambers Communication will work with 4J on fund-raising activities with the goal of raising sufficient funds to install the remaining electronics and lateral extensions (approximately $250,000 to $400,000).
Ms. Wright requested that the Board authorize staff to negotiate a dark fiber license with School District 4J under the terms and pricing proposed in the aforementioned memorandum. She said the resulting Agreement would be brought back to the Board as a Consent Calendar item for final approval.
President Dyer expressed concern regarding how EWEB would respond to other entities that request similar consideration.
Commissioner Smith stated that while she supported the proposal, she shared the concern expressed by President Dyer. She suggested that discussion of the issue be included on a future Board Meeting agenda.
Vice President Bishop echoed the concern raised by President Dyer regarding the possible setting of a precedent. In addition, she said she found it difficult to support this proposal, when some financial details of the Telecommunications Project have yet to be resolved. Commissioner Anderson said she would share that concern if the project was in Phase II as opposed to Phase I.
President Dyer said he would support the proposal; however, he was concerned about "discriminatory pricing," particularly with regarding to public versus private entities. He said he would support the proposal, given that the project was in Phase I.
Vice President Bishop inquired as to whether the Board could defer its action, and convene as a full Board to make this decision, without deleteriously impacting 4J.
Commissioner Anderson moved, seconded by Vice President Bishop, to authorize EWEB's General Manager to negotiate a dark fiber license with School District 4J under the terms and pricing outlined in the May 31, 2000 memorandum. The motion passed unanimously.
AMENDMENT TO HYUNDAI WATER SALES AGREEMENT
Referring to a memorandum entitled Approval of the First Amendment to the Hyundai Water Sales Agreement, and attachments thereto, copies of which were included in the meeting agenda packet, EWEB Director of Facilities Tom Buckhouse recommended Board approval of the First Amendment to the Water Sales Agreement establishing new Exhibits "C," "D," and "E" to the Water Sales Agreement.
Vice President Bishop moved, seconded by Commissioner Anderson, to approve the First Amendment to the Water Sales Agreement establishing new Exhibits "C," "D," and "E" to the Water Sales Agreement and authorizing the General Manager to sign the First Amendment to the Water Sales Agreement, as presented. The motion passed unanimously.
DRINKING WATER SOURCE PROTECTION PLAN UPDATE
Referring to a memorandum entitled Progress Report on Drinking Water Source Protection Plan, copies of which were included in the meeting agenda packet, EWEB Environmental Manager Laurie Power introduced Drinking Water Source Protection Plan "team members" and presented an overview of the purposes and goals of the plan.
In summary, Ms. Power said EWEB's Water Source Protection Plan will provide the basis and direction for a source protection program for the McKenzie River, including funding to support protection activities.
Ms. Power reviewed the "major tasks" of the Water Source Protection Plan, as follows: These include preparing a description of the drinking water protection area; defining goals and objectives for the plan; updating the 1995 environmental risk assessment; researching regulations, possible protection partnerships, and additional water quality monitoring; and developing a set of strategies and action items for source protection. A community outreach plan is also being developed, as is a budget for the source protection plan.
Ms. Power reviewed the schedule of the plan, as follows: Staff anticipates completing a draft plan in early summer, checking in with the community throughout the summer, and presenting a draft plan to the Board in September, with adoption scheduled in October.
Ms. Power noted that the 2000 budget for this project was $40,535 to cover labor costs for developing the plan.
With regard to progress made to date, Ms. Power said accomplishments include: 1) updated the assessment of potential environmental risks to EWEB's McKenzie water supply that was completed in 1995, with no new risk categories identified; 2) drafted source protection goals and objectives; 3) ranked the risk categories to help with the development and timing of protection strategies; and 4) researched and completed working drafts on action aspects of a plan, including delineation of the source protection area, regulatory options, effective partnerships, public education, and water quality monitoring.
With regard to next steps, Ms. Power said a draft plan should be ready for public review by the end of June. She said public outreach activities would be scheduled throughout the summer. Ms. Power said that because many activities that impact the McKenzie River water quality are undertaken by those who live, work, and recreate on the river, public educational and outreach will be targeted to those groups. She said staff will brief the McKenzie Watershed Council and the McKenzie Residents Association. In addition, Ms. Power said staff members would meet with State Department of Environmental Quality (DEQ) representatives to secure that agency's support for EWEB's plan.
Commissioner Anderson predicted that an issue of interest to the public would be the relationship between this effort and the DEQ's most recent endangered species listing.
ITEMS REMOVED FROM THE CONSENT CALENDAR
The Commissioners reviewed the minutes of the May 15, 2000, Work Session.
Commissioner Anderson said the starting time of the Work Session was 6 p.m.
Referring to sentence 3 of paragraph 2 on page 2, Commissioner Anderson requested that "was favorable" be deleted.
The Commissioners reviewed the minutes of the May 15, 2000, Regular Board Meeting.
Commissioner Anderson said the starting time of the Regular Board Meeting was 8 p.m.
Vice President Bishop moved, seconded by Commissioner Anderson, to approve the minutes of the May 15, 2000, Work Session and Regular Board Meeting. The motion passed unanimously.
The meeting adjourned at 9:20 p.m.
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Assistant Secretary President