January 2021 Regular Board Meeting

Date

Wednesday, January 13, 2021

Time

6:01 p.m.

Agenda

For the hearing-impaired, an interpreter can be provided with 48 hours' notice prior to the meeting. To arrange for this service, call (541) 744-3603.

“The Mission of the Springfield Utility Board is to provide safe, reliable, cost-effective utility-related services to the citizens and businesses of the Springfield community.”

To ensure safe public meetings, we continue to follow current and up-to-date COVID precautions.

January 13, 2021

Special Meeting – 5 to 5:45 p.m.

The Springfield Utility Board plans to hold a special meeting to administer Oaths of Office, to prioritize 2021 Board Goals, and to discuss Board Proposals - time permitting.

Regular Board Meeting – to begin at approximately 6:00 p.m.

This meeting will commence at approximately 6:00 p.m., after the conclusion of the 5:00 p.m. special meeting. The public is invited to attend the Special Meeting and the Regular Board Meeting via phone or internet by following the instructions further down the page and will be prompted for comment during the meetings. The public also has the opportunity to submit public comment in advance, to be entered into the record, via email to subboard@subutil.com by Noon on Wednesday, January 13.

Instructions to attend the Special Meeting and Regular Board Meeting

Use this one-touch link to join from your computer, tablet, or smartphone: https://global.gotomeeting.com/join/763970301

To join using the GoToMeeting App, enter meeting ID: 763-970-301

Use your telephone for Audio Only Mode – please mute your microphone to cancel background noise:

Call-in: (866) 899 4679 (Toll-Free)

Call-in: (571) 317-3116 (Long Distance charges may apply)

Access Code: 763-970-301

Oregon Relay/TTY: 711 -or- (800) 735-1232

Executive Session – to commence at approximately 7:30 p.m.

Pursuant to ORS 40.225, ORS 192.660(2)(e), ORS 192.660(2)(f), and ORS 192.660(2)(h); attorney-client privilege, to deliberate with persons designated to negotiate real property transactions, to consider information exempt from public inspection, and to consult with counsel regarding pending or potential litigation. This is a non-public meeting.

Special Meeting – to commence at approximately 8:00 p.m., if needed

The purpose of this open meeting is to allow potential Board action following executive session and/or discuss Board Proposals. The meeting will commence after the conclusion of the executive session, if needed.

Regular Board Meeting – to begin at approximately 6:00 p.m.

Agenda

I. Call to Order

A. Pledge of Allegiance

II. Business from the Audience – please limit comments to 3 min each

III. Business from the Board

A. Consent Agenda – Action – 5 min
- 1. Approval of Minutes
- 2. Approval of Accounts Paid Listing
B. Administrative Appointments – Action – 10 min
C. Authorization of Agreement and Appointment of Legal Counsel to the Board – Action – 10 min
D. Non-Union Compensation and Benefits – Action – 10 min
E. Public Hearing on Proposed Sale of Surplus SUB Property – 10 min
- 1. Staff Presentation
- 2. Public Testimony
F. Consideration to Adopt Resolution 21-1, Approving Sale of Surplus Property – Action – 5 min

IV. Business from the General Manager

A. Update on SUB’s Property and Liability Insurance – 15 min
B. Presentation on Overview of SUB’s Fiber Strategy –10 min
C. State of the City’s U.S. Ignite Grant – 5 min
D. City Outreach on Long Term Infrastructure Projects – 10 min
E. SUB’s 2020 Utility Rate Comparison and Incentives Review – 10 min
F. Consideration of Recommendations from Staff DEI Advisory Committee – 10 min
G. Telecommunications Update – 5 min
H. TEAM Springfield Update – 5 min

V. Other Business from the Board

A. Board Member Updates – 5 min
B. Future Board Agenda Items – 5 min

VI. Adjournment

Total Time 130 min

Executive Session – to commence at approximately 7:30 p.m.

Special Meeting – to commence at approximately 8:00 p.m., if needed

Minutes

Regular Board Meeting – January 13, 2021

Minutes

Board approved at its March 10, 2021, Regular Board Meeting.

The regular board meeting of the Springfield Utility Board (SUB) was held virtually and was called to order by Chair Eyster at 6:01 p.m.

Chair Eyster thanked John DeWenter for his exceptional service and his truly remarkable work as Board Chair for the last two years. He also welcomed new Board member Mark Molina and congratulated him on his recent election to SUB’s Board; and welcomed back re-elected members Robert Scherer and David Willis.

Attendance

Board: Mike Eyster, Chair; Robert Scherer, Vice-Chair; David Willis; John DeWenter; Mark Molina.

Staff: Jeff Nelson; Sanjeev King; Greg Miller; Janis Brew; Tracy Richardson; Rudy Eckert; Dan Sauter; Cindy Flaherty; Joe Leahy and Matt Dahlstrom, Attorneys for the Board.

Others: Jeff Griffin, WHA Insurance; Jeff Paschall, City of Springfield; Stephen Parac XS Media.

Consent Agenda – Action

Minutes:

November 18, 2020 Regular Board Meeting

Accounts Paid– December 2020

* John DeWenter motioned to approve the Consent Agenda, as presented. This motion carried unanimously.

Business from the Audience

None.

Business from the Board

Administrative Appointments

* The Board made the following appointments:

General Manager Nelson is the Secretary-Treasurer.
Robert Scherer will continue as Liaison to the Springfield City Council, and Mark Molina will be an alternate Liaison.
Jeff Nelson, David Willis, Shawn Madison, Robin Musgrove, Anthony Otto, Janis Brew, and the Plan Administrator remains open, due to the void created by Bob Fondren’s recent retirement, for SUB’s 2021 Retirement Plan Review Committee.
No action was required at this time. In July 2018, the Board awarded a 3-year contract to Moss Adams to perform SUB’s external auditing services for 2018-20. A recommendation for 2021 auditing services will be brought forward after the audit for 2020 is presented to the Board in April 2021.
Jeff Nelson to serve as SUB’s Voting Delegate at the APPA Legislative & Resolutions Committee meetings for 2021.

Authorization of Retainer Agreement and Appointment of Leahy Cox, LLP as Legal Counsel to the Board

With Jeff Nelson’s strong endorsement and recommendation that the Board take action to appoint Leahy Cox, LLP, as legal counsel and to authorize the proposed Retainer Agreement with Leahy Cox, LLP, the Board made the following motions:

* John DeWenter motioned to appoint Leahy Cox LLP as SUB Legal Counsel for 2021. Following brief discussion, this motion carried unanimously.

* John DeWenter motioned to authorize the General Manager to execute the 2021 Retainer Agreement with Leahy Cox, LLP, as presented. This motion carried unanimously.

Non-Union Compensation and Benefits

Jeff Nelson referred to his memo on Non-Union Compensation/Benefits (Exhibit A) and shared a presentation on Non Union Compensation/Benefits (Exhibit B). Following discussion, the Board made the following motion:

* David Willis motioned to endorse the recommendation of nonunion compensation and benefits package for non-union employees for 2021, including option B medical, as presented. This motion carried unanimously.

Mr. Nelson expressed his appreciation to all the non-union employees who engaged in this process and wanted to recognize their contribution in this effort.

Public Hearing on Proposed Sale of Surplus SUB Property

Chair Eyster opened the public hearing on the proposed sale of surplus SUB property at 6:24 p.m.

Following Jeff Nelson’s presentation on the proposed sale of surplus SUB property (Exhibit C), the Board allowed time for public comment.

As there was no public comment, Chair Eyster closed the public hearing at 6:29p.m.

Consideration to Adopt Resolution 21-1, Approving Sale of Surplus Property

Chair Eyster asked the Board if it wished to take action on the resolution to approve sale of surplus SUB property.

* John DeWenter motioned to adopt Resolution 21-1, approving declaring real property owned by Springfield Utility Board surplus and directing the General Manager to sell the property for an offer in the best interest of the Springfield Utility Board, (Exhibit D) and the express findings there in.

Following brief discussion, Board consensus was to modify Resolution 21-1, to note the original cost to SUB by including additional language: “Springfield Utility Board purchased the property for $840,000.” This motion carried unanimously.

Business from the General Manager

Update on SUB’s Property and Liability Insurance

Jeff Griffin of WHA Insurance, SUB’s insurance agent of record, shared a presentation (Exhibit E), on SUB’s performance in 2020 and reviewed SUB’s loss ratio. SUB looks very good over a long period of time.

The Board thanked Mr. Griffin for his time and insights for SUB.

Overview of SUB’s Fiber Strategy

Tracy Richardson shared a presentation on Springfield Utility Board Telecommunications (Exhibit F) and shared an overview on the history of SUB telecommunications, and next steps in achieving its telecommunications objectives, including Net Neighborhoods and dark fiber.

The Board shared discussion on SUB’s middle mile, its fiber strategy, and the data center (micro carrier hotel) in Springfield.

Stephen Parac, with XS Media, commented that by having a micro carrier hotel that is open to all gets those regional internet service providers closer to Springfield at a reduced cost. He expects SUB would experience its dark fiber being leased more. Mr. Parac shared that XS Media will be leasing more dark fiber and providing service to residence.

The Board thanked Ms. Richardson for her presentation, and Stephen Parac for his comments.

TEAM Springfield Update

Mr. Nelson shared that Team Springfield will be holding a virtual meeting with Chief Administrative Officers and Chief Elected Officials on Friday, January 15, 2021. Topics of discussion will be Diversity, Equity and Inclusion, and also Economic Development and Recovery.

He has also presented the question again of whether or not our Team Springfield counterparts, Willamalane and the City, are interested in SUB’s share of its ownership in the GP property. SUB owns 1/3 share of the property with Willamalane and the City.

He also reopened the question to Willamalane and the City if they still want to use the fiber that SUB has not charged them for the use of for a long period of time, and to find out if the fiber is not going to be used by them and potentially could be reassigned to somebody else.

Additional Action Item

General Manager Nelson referred to his January 13, 2021 memo on a Recommendation for LE-8 Service 5250 Highbanks Road (Exhibit G) and explained that SUB has an applicant for the LE-8 Service. He recommends that the Board approve the LE-8 service for this application, as described in his memo

* John DeWenter motioned the Board approve the request for LE-8 service for 5250 Highbanks Road. Following brief Springfield Utility Board - MINUTES January 13, 2021 - Regular Board Meeting Page 5 of 5 discussion on cost recovery, and the difference between LE-8 service and Net Neighborhoods, this motion carried unanimously.

Consideration of Recommendations from Staff DEI Advisory Committee

Chair Eyster referred to the December 8, 2021, memo to Jeff Nelson, General Manager, on Update from the DE&I Advisory Committee (Exhibit H) and wanted to thank the committee for its report.

Jeff Nelson noted that he had asked the committee to review SUB’s Mission Statement and Core Values as an exercise for the purpose of the committee to share guidance to him to explore how to use the resources within the organization that are dedicated towards Diversity, Equity, and Inclusion to add to the Board’s perspective when making decisions as related to policy.

The Board shared discussion related to Diversity, Equity, and Inclusion, and SUB’s current Mission Statement.

Other Business from the Board

Board Member Updates

None.

Future Board Agendas

None.

Adjournment

The meeting was adjourned by consensus at 8:19 p.m.

Mike Eyster, Board Chair

Jeff Nelson, Board Secretary