Board Members present: Dorothy Anderson, Susie Smith, and Patrick Lanning. President Sandra Bishop, and Commissioner Peter Bartel were excused.
Others Present: Randy Berggren, JoAnn Andersen, Terry Bequette, Steve Blair, Deborrah Brewer, Tom Buckhouse, Brenda Sirois, Dick Helgeson, Cathy Hamilton, Kris Kendall, Jim Maloney, Mat Northway, Jim Origliosso, Laurie Power, Dick Varner, Jim Wiley, and Krista Hince of the EWEB staff; and Kim Kunkel, Minutes Recorder.
Noting the absence of President Bishop, Vice President Anderson called the Special Board Meeting of the Eugene Water & Electric Board (EWEB)to order.
AGENDA CHECK
Vice President Anderson noted that the EWEB Work Session would take place following the Special Board Meeting.
APPROVAL OF CONSENT CALENDAR
Vice President Anderson noted that the following item was included on the Consent Calendar:
Commissioner Smith moved, seconded by Commissioner Lanning, to approve the Consent Calendar. The motion passed unanimously.
CORRESPONDENCE
General Manager Randy Berggren expressed appreciation to the many volunteers who assisted in staffing EWEB's water booth during the recent Eugene Celebration, noting that Commissioner Lanning worked a shift with him on Saturday night.
Mr. Berggren said EWEB would like to feature each Board Member in the Register-Guard during the upcoming Public Power Week.
Mr. Berggren noted that an additional Board Meeting was scheduled for September 20 (tomorrow night). He said the focus would be the EWEB budget.
Mr. Berggren reviewed a number of information items included in the meeting agenda packet, including the following: 1) Corrections to the Register-Guard Article on EWEB Site; and 2) Potential impacts of Ballot Measure 93.
Mr. Berggren reviewed draft agendas for the October 3 Work Session and Regular Board Meeting.
ITEMS FROM BOARD MEMBERS
Commissioner Lanning reported that he attended the recent Power Risk Meeting at EWEB. He thanked the staff members for their helpfulness in all the acronyms in use.
PUBLIC INPUT
There was no public input.
EWEB HEADQUARTERS MASTER PLAN
Referring to a large flow chart illustrating EWEB's approach to the master plan, EWEB Project Manager Deborrah Brewer and MIG, Incorporated representative Sally McIntyre presented an overview of the proposed time frame related to the development and implementation of EWEB Master Plan. Ms. Brewer noted that the Master Plan Project was currently in the "needs assessment," or Phase 1, stage.
Ms. McIntyre said MIG, Incorporated would conduct a multi-faceted analysis and issue a recommendation to EWEB regarding the future of the EWEB Headquarters site. She said MIG would then relay that recommendation, assuming it is approved by EWEB, to the larger community. Ms. McIntyre presented a brief overview of the MIG staff team that would be involved in the EWEB Master Plan analysis.
Referring to a series of overhead displays, copies of which were distributed to the Board, Ms. McIntyre presented an overview of the proposed EWEB Master Plan project schedule. She noted that the project is divided into four phases: 1) Operational Needs Analysis; 2) Conceptual Model of Efficient Operations & Evaluation Criteria; 3) Future Options Development & Evaluation; and 4) Summary Report & Presentation of Findings.
Noting that prompt Board action was needed on project "deliverables," Ms. McIntyre reviewed the following proposed meeting dates related to the Master Plan Project:
October 24, 2000 November 8, 2000 November 14, 2000
November 28, 2000 January 9, 2000 (presentation of MIG's final report)
The Board asked a number of clarifying questions.
NEW RESOURCE UPDATE--POTENTIAL ACQUISITION OF WINDPOWER FROM BPA
Referring to a document labeled "Confidential & Business Sensitive," and an attached resolution, copies of which were included in the meeting agenda packet, New Resource Project Manager Jim Maloney presented an overview of the Bonneville Power Administration's (BPA's) proposal to EWEB for the Foote Creek 4 Power Purchase. He explained that BPA's Business Line proposes to provide EWEB with 25 percent of the output of the Foote Creek 4 wind resource. He said BPA would provide this power when the project begins energy production and a contract is executed, and ending September 30, 2006. Mr. Maloney said the total annual average output of Foote Creek 4 is expected to be approximately 7aMW. Mr. Maloney reviewed the terms and conditions of the proposed purchase.
Commissioner Smith moved, seconded by Commissioner Lanning, to approve the resolution authorizing the General Manager to finalize negotiations and enter into a power purchase contract with the Bonneville Power Administration for the proposed portion of the output from the Foote Creek Phase 4 for a period of six years (effective October 1, 2000). Such contract terms shall be reviewed by legal counsel and be in keeping with the existing policies of the Board with respect to environmental stewardship, affordability, and community responsiveness. The motion passed unanimously.
PURCHASING CLASS EXEMPTION
Referring to a memorandum entitled Proposed Division 320 Purchasing Rule, copies of which were included in the meeting agenda packet, EWEB Treasurer Jim Origliosso recalled that on September 5, the Board was presented with a staff proposal to institute an additional section (called a "Division") to EWEB's purchasing rules. He said this new rule covers some situations now presented to the Board as exceptions to the existing bidding requirements.
Mr. Origliosso stated that when brought to the Board as an exception, a 14-day public notice and public hearing is required prior to approval or disapproval of the exception. He said this requirement presents the opportunity for an unsuccessful provider to subvert the public process to interfere unnecessarily in the development of a long-term professional relationship.
Mr. Origliosso stated that the proposed Division 320 would allow the Board to proceed with these types of transactions without the formal notice period and public hearing. He said the Board could, on its own initiative, voluntarily conduct public hearings on these types of matters without being required to do so. He said the implementation of Division 320 would, in no way, restrict the amount and nature of information conveyed to the board about such transactions, nor would it change the nature of the approvals requested by staff. Mr. Origliosso reviewed the advantages of adopting Division 320.
Mr. Origliosso requested that the Board, in its role as Contract Review Board, schedule a public hearing for the purpose of taking public comment on the implementation of Division 320.
Commissioner Smith said EWEB should err on the side of ensuring competitiveness and retaining the public trust. She expressed concern regarding language in one EWEB staff memorandum referring joint venture members' selection of brand name products. She questioned the value of waiving the public hearing requirement to address the issues presented by staff.
Commissioner Smith suggested that future intergovernmental agreements include procurement agreements. The Board expressed support for Commissioner Smith's suggestion.
LOAD REDUCTION PILOT RATE
Referring to a memorandum entited Demand Reduction Pilot Rate Proposal, copies of which were included in the meeting agenda packet, and a series of overhead displays, copies of which were distributed to the Board, EWEB Fiscal Services Supervisor Dick Varner, and Key Account Managers Jim Bremis and Steve Hill presented an overview of a proposed demand reduction pilot rate designed to increase the probability that firm electric service is maintained to all customers during periods of potential electricity shortages.
Mr. Varner requested that the Board approve a pilot demand reduction program with the following components:
Mr. Varner said future plans related to demand reduction include:
Commissioner Smith inquired as to the flow of benefits related to the proposed demand reduction program. Mr. Varner responded that EWEB would pay customers 75 percent of the market price for those hours where they curtail the load. He said this would allow EWEB to avoid a more expensive market purchase which would impact EWEB's entire customer base.
Commissioner Smith inquired as to how it is decided which customers are contacted regarding their ability to reduce load. Mr. Varner responded that customers contacted by EWEB would be asked to call back. He said EWEB would likely accept the load reductions that are made available on a first come basis.
Commissioner Lanning moved, seconded by Commissioner Smith, to approve the Load Reduction Pilot Rate, as proposed by staff. The motion passed unanimously.
The Board requested that staff issue a report on the pilot rate in January.
ITEMS REMOVED FROM CONSENT CALENDAR
There were no items removed from the Consent Calendar.
The meeting adjourned at 7:26 p.m..
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Assistant Secretary President