May 2021 Regular Board Meeting

Minutes

Regular Board Meeting – May 12, 2021

Minutes

Board approved at June 9, 2021 Regular Board Meeting

Chair Eyster called the virtual regular board meeting of the Springfield Utility Board (SUB) to order at 5:58 p.m. and lead everyone in the Pledge of Allegiance.

Attendance

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

Staff: Jeff Nelson; Cynthia Scoble; Sanjeev King; Greg Miller; Janis Brew; Meredith Clark; Tracy Richardson; Cindy Flaherty; Joe Leahy and Matt Dahlstrom, Attorneys for the Board.

Others: Jeff Paschall, City of Springfield; Jennifer Joly, OMEU.

Business from the Audience

None.

Business from the Board

Consent Agenda

Minutes

• February 10, 2021 Regular Board Meeting
• March 10, 2021 Regular Board Meeting
• April 14, 2021 Regular Board Meeting

Accounts Paid - April 2021

Bids/Proposals

• WSC Bid No. 2021-17, Pavement Restoration for 4th Street, E to B Streets (Exhibit A) to Wildish Construction Co. for a total amount of $169,070.00, for the lowest responsible bid submitted meeting specifications.
• ESC Bid No. 09-21, Distribution Transformers (Exhibit B) to Anixter/Cooper for purchase of 30 distribution transformers for a total amount of $36,675.00; and to Hees Enterprises/Ermco for purchase of 42 distribution transformers for a total amount of $168,228.00.
• ESC Memo on Fuel Truck Update (Exhibit C) for final costs in the amount of $5,200.00 for shipping and $4,800.00 for up-fits of custom build and install manifold for the used 2015 Kenworth fuel truck. Last month the Board approved for the sole source purchase of a used 2015 Kenworth chassis with a 2000 Young’s fuel tank (2,600-gallon capacity) for an asking price of $89,500.00, excluding shipping and minor up-fits.

* John DeWenter moved to approve the Consent Agenda, as presented. This motion CARRIED unanimously 4:0. Noting for the record, Boardmember Molina was not present to cast a vote for this motion.

Further Discussion on Board Retreat Agenda

No further discussion.

General Manager Performance Evaluation

Chair Eyster referred to the Performance Evaluation Review document (Exhibit D) provided in the Board packet for General Manager Nelson and said that he would entertain a motion from the Board at this time.

* John DeWenter moved to approve the Performance Evaluation Review, as presented. This motion carried unanimously 4:0. Noting for the record, Boardmember Molina was not present to cast a vote for this motion.

Appreciation Noted

Noting that the Board takes careful consideration and review of items on the consent agenda, General Manager Nelson noted that with collaborative projects such as the pavement restoration on 4th Street, as well as other pavement restoration projects and general projects in and around the City, SUB not only appreciates SUB staff for their work in providing the best outcomes for the City of Springfield and SUB’s customers, but he also wanted to acknowledge the City of Springfield staff’s work in collaborating with SUB staff on these projects. Mr. Nelson shared that City Engineer Jeff Paschall is attending the meeting virtually tonight, and expressed his appreciation for his and his team’s efforts in always trying to make SUB’s and the City’s collaborative projects run as efficiently, effectively, and as safe and sound as possible.

Business from the General Manager

SUB Financial Analysis Update

Jeff Nelson shared that this is a follow up discussion, which is offered to the Board each year following the annual audit report it receives from Moss Adams, LLP.

Referring to her presentation on Financial Analysis – Springfield Utility Board (Exhibit E), SUB Financial Director Cynthia Scoble provided an overview and some highlights of SUB’s financial status and performance. Ms. Scoble noted that SUB has a good cash position and the ability to fund operations and capital expenditures for more than six months. SUB has no outside debt, its rates are extremely competitive in the state and in Lane County, and it continues to add to and robustly maintain its systems. Following brief discussion, the Board thanked Ms. Scoble for her presentation tonight.

Mountainvale Net Neighborhood Application

Tracy Richardson began her presentation, XS Media Mountainvale Net Neighborhood Application (Exhibit F) by sharing an overview of the Mountainvale Net Neighborhood. She reviewed the application status, discussed the area to be served, and shared project details, timeline, SUB’s up-front costs, and XS Media’s project budget.

Ms. Richardson stated that it is requested that the Board consider taking action at this time.

* Mark Molina moved to authorize the General Manager to execute an Agreement for the Mountainvale Net Neighborhood with XS Media in an amount not to exceed $72,000.00 plus SUB’s up-front costs (currently estimated at $19,000.00). Middle mile fiber used will reflect the amount presented in this presentation and will be included as an Exhibit to the Net Neighborhood agreement. Prior to execution, Exhibits and the Agreement may change, but are subject to review by SUB legal counsel. Following brief discussion, this motion carried unanimously 5:0.

Property Update

General Manager Nelson shared a brief update on some of SUB’s property. SUB has reached out to Team Springfield agencies to see if there is a need for the walk-in freezer type of equipment that needs to be removed from the South A Street warehouse property before practical use of that space. There is also some safety assessment follow up items that need to be completed associated with the racking system, but remain excited for this new warehouse space and grateful to the Board for its support of this property acquisition.

With respect to that property, SUB is also looking into demoing the office space located next to the warehouse, in order to free up space, and looking at access going into the property and some additional fencing. He noted there has been good progress and thanked the staff for its work on this.

Mr. Nelson shared that he has executed the purchase and sale agreement for the SUB Main Street property and the acquisition of the City parking lot. He is expecting SEDA and the City to move forward with countersigning the purchase and sale agreement. He will be working with legal counsel on executing an associated agreement related to the In-Lieu-OfTax for sewer billing, which the SUB Board has approved. The expectation of those closing dates are around the end of June.

Georgia Pacific Property Master

Plan Jeff Nelson referred to his memo on Georgia Pacific Property Master Plan (Exhibit G), which includes a copy of his May 6, 2021 correspondence to Willamalane Superintendent Michael Wargo and shared a brief update with the Board. SUB has engaged Willamalane and the City regarding its interest to transfer SUB’s share of ownership of the Georgia Pacific Property, prior to implementation of the 2021 master plan; as the expansion of more recreational use of the property has narrowed the potential uses for SUB. He recommends the Board support the master plan with the condition that SUB’s interests are addressed prior to implementation of the master plan.

Chair Eyster said he would entertain a motion from the Board at this time, and allow time for discussion prior to Board vote.

* David Willis moved to support the Georgia Pacific Natural Area 2021 Master Plan with the conditions that SUB’s interests are addressed prior to implementation.

* Following discussion, the Board voted by verbal response to the motion on the floor. This motion carried unanimously, 5:0.

Telecommunication Update

Jeff Nelson referred to his memo on Revisiting SUB’s Telecommunication Strategy (Exhibit H) and noted that the Board had the opportunity to review, and asked for any input from the Board.

Chair Eyster shared a brief update on a recent meeting with the City to discuss the future of telecommunications in Springfield and the collaborative efforts of the City and SUB. Jeff Nelson will follow up with the City on when it might want to plan another meeting sometime in the future for further discussion.

Following discussion, Board consensus was to discuss this topic further at its June 15 Board Retreat Work Session.

Referring to John DeWenter’s email correspondence on Telecom Follow Up (Exhibit I), Jeff Nelson shared that philosophically, Board DeWenter and he are very much in alignment. Although he noted that in order to be able to achieve objectives, there is the need to have funding. He feels DeWenter’s intent was not to express an unachievable objective, but that he wanted more clarity around milestones.

John DeWenter noted that he was skeptical about SUB committing to financing relating to the carrier hotel or to the backhaul from the carrier hotel to the regional exchange. He feels SUB needs do what is necessary to complete the loop on this.

Discussion ensued as related to the carrier hotel, the backhaul, and the bridge. For clarity, it is noted that the term “bridge” refers to whatever goes from the carrier hotel in Springfield to the exchange at 859 Willamette Street in Eugene, and the term “backhaul” refers to whatever goes from 859 Willamette to the regional exchange in San Jose or Portland.

Jeff Nelson also shared a brief update on the collaboration efforts and exploration on the US Ignite grant. There have been ongoing meetings with the local group that focuses on Smart Cities, and there has been collaboration with the County, City of Eugene, the City of Springfield, and SUB to discuss some larger issues on how to make our local communities smarter and more connected.

He noted that Tracy Richardson has responded to a state request for information on a “Shovel Ready” initiative and has submitted information on Net Neighborhoods project. Matt Sayre will be following up with Ms. Richardson in terms of seeing if there is a way to close the loop, to see if the state needs more information or how SUB could make its application more robust in terms of the request for state funds associated with Net Neighborhoods.

Mr. Nelson also offered that there is an opportunity to reach out to local housing relationships so SUB might provide service to those people in need in the community over SUB’s network and be paid for by grant funding.

Following brief discussion and concerns as related to SUB’s Mission Statement and Charter, the Board will review the Charter that is posted on SUB’s website.

TEAM Springfield Update

Jeff Nelson shared that Team Springfield is engaged with stakeholders about the running track to be installed at Willamalane Park. Team Springfield agencies are looking at supporting the new running track proposed for construction at the Willamalane Park located near the Oregon Women Veterans Memorial on Mohawk Boulevard and I Street. The property is owned by Willamalane Park and Recreation District and a portion is owned by Springfield Public Schools.

Status of Board Priorities

With Board consensus, Chair Eyster moved this item to be discussed at this time. Jeff Nelson shared a brief update on the status of Board priorities and requested that the Board provide a more succinct short list of goals and its priorities, instead of a very specific and lengthy list of items that might create extra staff time to understand exactly what the Board is requesting from staff.

Other Business from the Board

Additional Items

John DeWenter noted he provided handouts to the Board for review previously regarding motions he would like to present to the Board for its consideration tonight. These motions are proposed with the intent to give management a clear, specific expectation from the Board with respect to concrete action and a timeline to get that accomplished.

Referring to his handout Motion Regarding Rainbow Water District (Exhibit J), Boardmember DeWenter offered the following motion:

* John DeWenter moved that, no later than the Board’s July 14, 2021 regular meeting, the GM present the Board an initial draft intergovernmental agreement (IGA) involving SUB, Rainbow Water District and the City of Springfield to replace the existing IGAs involving the same parties. The replacement IGA should include, but not necessarily be limited to:

1. Carrying forward those provisions of the existing IGAs that still are necessary,

2. Deleting those provisions of the existing IGAs that no longer are necessary, and

3. Providing for the gradual phaseout of any requirement that SUB purchase water from Rainbow Water District as SUB is able to meet its water needs with its own McKenzie River water.

The replacement IGA should be complete within itself, without incorporating by reference any of the existing IGAs. All of the existing IGAs should be terminated on the effective date of the replacement IGA. The goal should be to have a single, complete replacement IGA written in plain English that does not require a reader to search the archives for multiple other documents to determine the current rights and obligations of the parties.

* Following in depth discussion, Robert Scherer moved to amend the main motion on the floor with a date of October 13, 2021, instead of July 14, 2021. The Board voted by verbal response to amend the main motion on the floor. This motion carried unanimously 5:0.

* The Board voted by verbal response to the main motion on the floor. Robert Scherer, John DeWenter, David Willis, and Mark Molina voted in favor of the motion. Mike Eyster voted against the motion. This motion carried 4:0.

Referring to his handout Motion Regarding EPUD (Exhibit K), Boardmember DeWenter offered the following motion:

* John DeWenter moved that, no later than the Board’s September 8, 2021 regular meeting, the GM present the Board an action plan to implement the goal of incorporating into SUB EPUD’s service territory and infrastructure within the City of Springfield’s city limits or UGB, whichever the GM believes is more advisable. The action plan should include, but not necessarily be limited to, the analyses listed under “Due Diligence” on the attached memorandum. The plan also should include the estimated times when the “Political Support” and “EPUD Negotiations” portions of the attached memorandum (Exhibit L) should be commenced and concluded. A draft proposal to EPUD to purchase its service territory and infrastructure should accompany the action plan.

* Following discussion, the Board voted by verbal response to the motion on the floor, as presented. Mike Eyster, John DeWenter, David Willis, and Mark Molina voted in favor of the motion. Robert Scherer voted against the motion. This motion carried 4:0.

Board Member Updates

David Willis shared brief follow up discussion related to the May 5th presentation by Murraysmith on the Water System Master Plan as related to Cascadia Events. Future Board Agendas None.

Adjournment

The meeting was adjourned by consensus at 8:23 p.m.

Mike Eyster, Board Chair

Jeff Nelson, Board Secretary