Board Members present: Sandra Bishop, Dorothy Anderson, Peter Bartel, Susie Smith, and Patrick Lanning.
Others present: Randy Berggren, JoAnn Andersen, Dean Ahlsten, Tom Buckhouse, Terry Bequette, Jim Bemis, Jon Cunningham, Jay Bozievich, Cathy Bloom, Marty Douglass, Mike Logan, Libby Henry, Kris Kendall, Still Hill, Mat Northway, Dick Helgeson, Jim Origliosso, Brenda Sirois, Jim Wiley, and Krista Hince of the EWEB Staff; Joe Sams, City of Eugene Minutes Recorder; Jerry Drucks, Anã Wilczynski, Chris Aetneave; and KEZI-TV; members of the public.
President Bishop called the Regular Board Meeting of the Eugene Water & Electric Board (EWEB) to order.
AGENDA CHECK
The agenda was approved as submitted.
APPROVAL OF CONSENT CALENDAR
Resolution:
1. Revolving line of credit for the Energy Conservation Loan Program
Contract Increases:
2. National Wood Treating - Pole Testing/Treating - Electric Operations - Electric Division
3. SCT Utility Systems, Inc. - Banner CIS Transition - Information Services - Corporate Services
4. Duke Engineering & Services - Stone Creek Hydro Environmental Compliance - Environmental Management - Corporate Services
Vice President Anderson, seconded by Commissioner Bartel, moved to approve the items on the consent calendar. The motion passed unanimously.
CORRESPONDENCE
General Manager Randy Berggren announced that there would be a group traveling to Tulsa Oklahoma to tour the Williams Company. He said that it was an opportunity to meet some of the board members of the company.
In response to a question from Commissioner Bartel regarding the Williams Company's commitment to environmental issues, Mr. Berggren said that their commitment was very high.
In response to a question from President Bishop regarding when the Williams Company and Umatilla Tribal Council would visit the EWEB facility, Mr. Berggren said that there was no certain date yet but there was a tentative January visit scheduled. He added that the council was anxious to visit.
President Bishop stressed the importance of a visit from the Umatilla Tribal Council.
Mr. Berggren announced that EWEB would have a representative at the Whiteaker neighborhood meeting regarding local tree care. He noted that EWEB would play a minor role primarily supplying information about underground lines.
President Bishop called for a Board Member to be present at the meeting. Commissioner Smith said that she would attend the meeting if her schedule allowed.
Mr. Berggren said that EWEB had released its first program announcement for the energy share program. He noted that there was an attachment in the meeting packet. He said that there was a possibility there would be a preliminary assessment at the next Board meeting.
ITEMS FROM BOARD MEMBERS
President Bishop read a letter, from the Northwest Energy Coalition, thanking EWEB for hosting a recent conference.
Commissioner Lanning related that he had attended a meeting on practices of sustainability. He said that one of the issues that arose was planning practices, two years into the future, around sustainability. He stressed the importance of knowing the views of the entire organization on the subject.
President Bishop said that she and Vice President Anderson had attended the Oregon Water Utilities Conference. She remarked that she had found it very educational.
President Bishop noted the Buying & Selling Electricity Conference in Seattle was coming up in the third week in January. She expressed a desire to go to the conference.
PUBLIC INPUT
There were no members of the public wishing to speak.
2001 BUDGET AND WORK PLAN
Dick Varner, Fiscal Services Supervisor, provided a presentation on the 2001 work plan. He provided information on the Water Operating Budget, the Water Capital Budget, the Steam Budget, the Electric Non-Power Operating Budget, the Electric Capital Budget, and the Power Budget. He noted that there needed to be a rate increase for the facility to be able to operate through 2002.
In response to a comment from Commissioner Bartel regarding a surcharge used by a Seattle power facility, Mr. Varner said that the impact of a surcharge on the customer would be the same as a rate increase.
In response to a question from President Bishop regarding how the Forward Power Sale affected the operating budget, Mr. Varner commented that large amounts of cash could be eaten up by small changes in loads or generation.
Commissioner Bartel raised concern over approaching a price threshold for the consumer and raising rates during the winter season.
Mr. Berggren said that the facility was in the process of looking at new money scenarios and was discussing a 7-9 percent rate increase in 2001. He added that there was month by month ongoing cash flow analysis.
Commissioner Bartel stressed the importance of providing information to the public about the rate increases.
Commissioner Smith said that it would be irresponsible to not raise rates incrementally as opposed to a sudden double digit increase.
Mr. Berggren took an opportunity to compliment the traders and analysts who were doing an outstanding job in an unstable and rapidly changing market.
President Bishop also preferred incremental rate increases as opposed to one large increase.
PUBLIC HEARING ON 2001 BUDGET AND WORK PLAN
President Bishop opened the public hearing. Seeing no one wishing to speak she closed the hearing and called for comments/questions from the Board members.
2001 BUDGET AND WORK PLAN
Mr. Varner recommended that the budget and work plan be approved as recommended.
Vice President Anderson, seconded Commissioner Bartel, moved to approve the 2001 budget and work plan as recommended by staff. The motion passed unanimously.
GROUNDWATER DEVELOPMENT RESOLUTION
Brenda Sirois, Water Resource Planning Analyst, provided a presentation on deep aquifer exploration for a back-up water supply. She said that staff was recommending an adoption of a resolution to proceed with using ground water as a back up supply for the City.
PUBLIC HEARING ON GROUNDWATER DEVELOPMENT
President Bishop opened the public hearing.
Moshe Immerman, 1290 Mclean, Eugene, raised concern over loss of water quality. He urged the Board not to allow a mixing of ground water with the usual McKenzie River water supply. He said that he was in favor of a back up supply in general but raised concern over a difference in taste and PH levels. He called for publication of PH levels and chemical content of the proposed back up system.
Mr. Immerman stressed the importance of not mixing back up system water with primary system water unless it was an emergency. He raised the point that overall mental health of communities was related to water quality.
Charles Biggs, 2405 Willakenzie, agreed with Mr. Immerman's comments and raised concern over the price of the project and about the possible degradation of the McKenzie River.
President Bishop closed the public hearing.
GROUNDWATER DEVELOPMENT RESOLUTION
In response to a question from Vice President Anderson regarding whether the new water source would only be used in emergencies, Ms. Sirois confirmed that the back up water supply would only be used for emergency purposes.
Commissioner Smith expressed her pleasure that public concerns reflected the concerns of EWEB. She commented that her concerns had been addressed. She stressed that the back up system would only be used in emergencies and was a cost effective back up source of water. She complimented staff for their work on the project.
Commissioner Smith, seconded by Vice President Anderson, moved to approve the resolution as proposed by staff.
President Bishop reiterated that the back up supply would only be used for emergency purposes and that EWEB would not be altering its water quality standards.
The motion passed unanimously.
2001 LEGISLATIVE PRINCIPLES
Libby Henry, Legislative Representative, read a copy of the proposed resolution on the 2001 legislative principles.
Commissioner Smith suggested adding language to the legislative intent so as to express opposition to overly honorous fees.
Vice President Anderson, seconded by Commissioner Bartel, moved adoption of the resolution on the 2001 legislative principles. The motion passed unanimously.
PUBLIC AGENCY NETWORK TELECOMMUNICATIONS PRICING POLICIES
Debra Wright, Risk Manager/Telecommunication Project, said that the proposed policies were the high level policies that staff would be using to price products and telecommunications services. She recommended approval of the staff recommendation.
Vice President Anderson, seconded by Commissioner Bartel, moved for approval of public agency network telecommunications pricing policies. The motion passed unanimously.
WINTER RELIABILITY ISSUES
Dean Ahlsten, Electric Division Engineering Manager, provided a presentation on the elements of the winter 2000-01 plan.
Vice President Anderson, seconded by Commissioner Bartel, moved approval of the winter emergency plan as presented by staff. The motion passed unanimously.
EXECUTION OF THE FORWARD POWER SALE AS A FINANCIAL TRANSACTION
Mr. Varner made himself available for board questions.
In response to a question from Commissioner Lanning regarding why the sale was good for EWEB and its customers, Mr. Varner said that a certain amount of money was needed for surplus power in 2002 and money from the Forward Power Sale provided for that financial flexibility.
Mr. Berggren added that it would eliminate the necessity for an eight percent rate increase in the future.
Vice President Anderson, seconded by Commissioner Bartel, moved to approve the Forward Power Sale as a financial transaction. The motion passed unanimously.
The meeting adjourned at 9:25 p.m.
_____________ ______________________________________
Assistant Secretary President