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.
March 10, 2021
Special Work Session – 5 to 5:45 p.m.
The Board plans to review its self-evaluation on the Board’s 2020 performance. The public is invited to join this meeting – instructions further down the page. Please note that the Board does not take public comment during work sessions.
Regular Board Meeting – 6:00 p.m.
This meeting will commence at approximately 6:00 p.m., after the conclusion of the 5:00 p.m. Special Work Session. Public hearings will be held during this meeting on: proposed increase to electric rates, proposed increase to dark fiber rates, proposal to amend previously adopted Board Resolution 20-11 regarding System Development Charges (SDCs) with an expected effective date of April 1, 2021, proposal to amend Chapter 5-Water Policy regarding SDCs with an expected effective date of October 1, 2021.
The public is invited to join this meeting – instructions further down the page. The public will also be prompted to address the Board, and be allowed time to offer testimony during each public hearing. The public also has the opportunity to submit public comment in advance, to be entered into the record, via our Contact Us form by Noon on Wednesday, March 10.
Instructions to join the March 10 Board Meetings
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
Special Work Session – 5:00 p.m.
The Board plans to review its self-evaluation on the Board’s 2020 performance. The Board does not take public comment during work sessions.
Regular Board Meeting – 6:00 p.m.
Agenda – Revised
I. Call to Order
- A. Pledge of Allegiance
II. Business from the Audience
III. Business from the Board
- A. Consent Agenda – Action – 5 min
- 1. Approval of Minutes
- 2. Approval of Accounts Paid Listing
- 3. Adopt/Approve Bids/Proposals
- 3.a. ESC Bid No. 08.21, Conductor and UG Cable
- 3.b. ESC RFP 02.21, Seismic Evaluation of Existing Buildings
- 3.c. WSC Bid No. 2021-02A, McKenzie River WTP Pressure Membrane Pilot Testing
- 3.d. WSC Bid No. 2021-04, Willamette Well No. 11 Rehabilitation
- 3.e. WSC Bid No. 2021-09, Ductile Iron Pipe for Mohawk & Olympic Overlay Project
- B. Public Hearing on Proposed Electric Rate Increase – 15 min
- C. Consideration to Adopt Resolution 21-2, Approving Proposed Electric Rates
- D. Public Hearing on Proposed Dark Fiber Rate Increase – 10 min
- E. Consideration to Adopt Resolution 21-3, Approving Proposed Dark Fiber Rates
- F. Public Hearing on Proposal to Amend Adopted Board Resolution 20-11 Regarding Development/Redevelopment Charge Calculations – 10 min
- G. Consideration to Adopt Resolution 21-4, Approving Amending Board Resolution 20-11
- H. Public Hearing on Proposal to Amend Chapter 5-Water Policy related to DRC – 10 min
- I. Consideration to Adopt Resolution 21-5, Approving to Amend Chapter 5-Water Policy re. DRC
IV. Business from the General Manager
- A. Resolution 21-6, Approving Request for Special Procurement, Confluence Engineering– Action – 5 min
- B. Social Media Outreach Update – 5 min
- C. Contract Review for Net Neighborhoods – Action – 10 min
- D. Extension of Temporary Easement to Willamalane – Action – 5 min
- E. General Manager Updates – 5 min
- 1. McKenzie Treatment Plant Progress
- 2. Downtown Voltage Conversion
- 3. In-Lieu-of-Tax Request and Next Steps
- 4. Telecommunications Update
- 5. TEAM Springfield Update
- F. Special Meeting May 5 – 5 min
V. Other Business from the Board
- A. Ethics Review – 30 min
- B. General Manager Form Review and Process – 10 min
- C. Board Member Updates – 5 min
- D. Future Board Agenda Items – 5 min
- E. Initial Review of Telecom Strategy – 5 min
Total Time 140 min
Regular Board Meeting – March 10, 2021
Board approved at May 12, 2021
Regular Board Meeting Chair Eyster called the virtual regular board meeting of the Springfield Utility Board to order at 6:00 p.m. and proceeded to lead everyone in the Pledge of Allegiance.
Board: Mike Eyster, Chair; Robert Scherer, Vice-Chair; David Willis; John DeWenter; Mark Molina.
Staff: Jeff Nelson; Sanjeev King; Greg Miller; Cynthia Scoble; Dave Embleton; Tracy Richardson; Cindy Flaherty; Joe Leahy and Matt Dahlstrom, Attorneys for the Board.
Others: Jeff Paschall, City of Springfield; Stephen Parac, XS Media; Josh Kvidt, Alyrica Networks; Matt Sayre, Onward Eugene; Kelly Hoell, Lane Transit District; Alyssa Martin.
Consent Agenda – Action
- January 13, 2021 Special Meeting
- January 13, 2021 Regular Board Meeting
Accounts Paid – February 2021
- ESC Bid No. 08.21, Conductor and UG Cable. Electric Division staff recommend award of this bid to three vendors as follows: General Pacific for 1,000 ft. of OH Conductor 4/0 Triplex – Cerapus, for an amount of $1,700.00; General Pacific for 21,000 ft. of UG Cable 1/0 19-STR ALU, 25kV – Verdi, for an amount of $55,335.00; and Wesco for 8,000 ft. of UG Cable 350kcmil 37-STR ALU – Wesleyan for an amount of $18,496.00 (Exhibit A).
- ESC RFP 02.21, Seismic Evaluation of Existing Buildings. Electric Division staff recommend award of this Qualification Based Selection RFP to WRK Structural & Seismic Engineers not to exceed $158,830.00 for seismic evaluation of existing buildings, and billing to be invoiced as time and materials (Exhibit B).
- WSC Bid No. 2021-02A, McKenzie River WTP Pressure Membrane Pilot Testing. Water Division staff recommend awarding a contract to Pall Water to conduct the membrane pilot testing for a total amount of $157,000.00 (Exhibit C).
- WSC Bid No. 2021-04, Willamette Well No. 11 Rehabilitation. Water Division staff recommend award of this bid to Schneider Equipment, Inc., for the rehabilitation on Willamette Well No. 11 located on South M Street & South 26th Street for a total amount of $69,900.00 (Exhibit D).
- WSC Bid No. 2021-09, Ductile Iron Pipe for Mohawk & Olympic Overlay Project. Water division staff recommend award of this bid to Core & Main for 1000 ft. of 30 inch and 1000 feet of 8 inch ductile iron pipe for a total amount of $181,930.00 (Exhibit E).
* Mark Molina moved to approve the Consent Agenda, as presented. Following brief discussion, the motion carried unanimously 5:0.
Business from the Audience
None at this time.
Business from the Board
Second Public Hearing on Proposed Electric Rate Increase
Chair Eyster opened the public hearing at 6:06 p.m.
Presentation on Proposed Electric Rate Increase
Jeff Nelson noted that this is the second public hearing the Board scheduled on a proposed electric rate increase. After the close of the public hearing and after the Board has deliberated, there is a request of the Board to consider taking action tonight to adopt Resolution 21-2, approving electric rate increase. His presentation on the 2021 Proposed Budget (Exhibit F) was provided at the December 1, 2020 Budget Committee meeting, and will discuss the elements of this presentation again tonight. He noted this is where the 10 Year Plan was introduced, and shared an overview of the budget process and rates process. Mr. Nelson added that at the time of his presentation in December, dark fiber rate increase was assumed not to be in 2021, but the Board did give direction to propose a dark fiber rate increase in 2021 and public notice was given for a public hearing to be held later during this meeting.
Mr. Nelson then offered a presentation to the Board on April 2021 Proposed Electric Rate Increase (Exhibit G) and noted that this was the second presentation on the proposed 2 percent (2%) electric rate increase, to be effective April 1, 2021, on all bill statements rendered on or after May 1, 2021.
Public Testimony on Proposed Electric Rate Increase
Kelly Hoell, Sustainability Program Manager with LTD located at 3500 E 17th Avenue in Glenwood shared comment on Electric Vehicle Technology (EVT). She said that LTD is investing in EVT and its Board of Directors passed an ambitious Climate Action Policy in June of 2020, and expanding LTD’s fleet of EV busses will be a vital part of its strategy to meet its fossil fuel and GHG reduction goals. She wanted to thank SUB for not increasing its demand charges as part of this proposed rate increase, as LTD continues to expand its EV fleet, they expect demand charges to make up 60-65 percent of LTD’s total electric costs.
Ms. Hoell also noted that at SUB’s February Board meeting, she heard General Manager Nelson ask the Board of its interest in developing a customer specific rate schedule, and she for large customers that may use electricity at times of day that are off peak of SUB’s community load profile. She spoke in favor of exploring this type of opportunity over the next year would be of significant interest to LTD, as they expect to, primarily charge, its EV fleet overnight when community demand would be low. LTD is seeking to increase its certainty of what its electric costs would be, ensure that it has EV busses available to meet community needs, and effectively serve the public by keeping its electric costs low. Ms. Hoell thanked the Board for its time and interest.
The Board thanked Ms. Hoell for her comments.
Alyssa Martin, a SUB customer, shared concern regarding rate increases from Bonneville. She would like to see something in the rate increase that guarantees that SUB is diversifying where we get our power; including solar and other areas. She noted that she is a social worker, and expressed concern for those dependent on SUB for their safety in extreme weather events. Ms. Martin encouraged SUB to be more resilient as to where it gets its power from.
The Board expressed its thanks to Ms. Martin for sharing her concerns and input.
Following brief discussion Chair Eyster noted that the Board would take tonight’s public input into consideration. Being no further public comment Chair Eyster closed the public hearing at 6:26 p.m.
Consideration to Adopt Resolution 21-2, Approving Proposed Electric Rate Increase
Chair Eyster asked the Board if it would like to make a motion at this time.
* David Willis moved to adopt Resolution 21-2 (Exhibit H), approving an overall 2 percent electric rate increase, as presented. Being no further discussion, the motion carried unanimously 5:0.
Public Hearing on Propose Dark Fiber Rate Increase
Chair Eyster opened this public hearing at 6:33 p.m.
Presentation on Proposed Dark Fiber Rate Increase
Jeff Nelson explained that during his earlier presentation, he noted that during the budget process for 2021 the Board directed staff to assume a 2.5 percent rate increase for dark fiber rate service. This proposed increase is for unlit telecommunications using SUB’s fiber system. He then provided a presentation on Dark Fiber Rate Schedule: Proposed Rate Increase (Exhibit I).
Mr. Nelson noted that pending public input, SUB staff recommend the Board take action tonight to adopt the rate increase, as presented.
Public Testimony on Proposed Dark Fiber Rate Increase
As there was no public input Chair Eyster closed the public hearing at 6:39 p.m.
Consideration to Adopt Resolution 21-3, Approving Dark Fiber Rate Increase
Following brief discussion, Chair Eyster said he would entertain a motion from the Board.
* Mark Molina moved to adopt Resolution 21-3 (Exhibit J), approving the increase to dark fiber rates, as presented. The motion carried unanimously 5:0.
* John DeWenter then moved to include a reasonable margin, in addition to recouping SUB’s capital and operational maintenance costs, in any future proposed dark fiber rate increase.
DeWenter noted that SUB is far from breaking even with the fiber utility and may have some additional capital expenses as well, and yet our rates are extremely competitive compared with other local dark fiber rates. He feels SUB has a responsibility to its ratepayers to get a better return on its investment, with respect to SUB’s dark fiber infrastructure. It seems appropriate to have some margin to be included in dark fiber rate increases.
Jeff Nelson noted that it is a journey with regards to the path with dark fiber rates. With SUB rates, like the electric and water rates, we do not have a rate that says “margin” on the rate schedules. In an effort to clarify the Board’s intention, he anticipates that that’s not what the Board is not intending with this motion, that it’s not looking to have “margin” with a rate attached to it with the dark fiber rate schedule, but the intent of the motion is to accelerate the recovery of costs associated with the telecom investment.
Following brief discussion, the motion carried unanimously 5:0.
Public Hearing on Proposal to Amend Adopted Resolution 20-11, Amending Chapter 5-Water Regarding Development/ Redevelopment Charges of SUB Board Policies
Chair Eyster opened this public hearing at 6:48 p.m.
Presentation on Proposal to Amend Adopted Board Resolution 20-11
Jeff Nelson explained that there are key components associated with the System Development Charge (SDC) or being proposed.
The first is a proposal related to a correction associated with SDCs that the Board adopted in December (Resolution 20- 11). Those development charges were effective at the time of adoption, and it is being requested to correct an error in those calculations. There is no change to methodology. Those rates would go into effect March 11, 2021.
The second is a proposal to amend Chapter 5-Water, Section 1-Connections to Service, Policy 5-1-1, related to Development/Redevelopment Charges (DRC) of SUB Board Policies. These new development charges would be effective October 1, 2021.
He referred to a memo that Greg Miller provided the Board on Development Redevelopment Charges – DRC’s (Exhibit K). His memo notes that the calculation error affected certain line items in the DRC’s but not others and was minor with respect to costs. If approved, the revised charges would become effective March 11, 2021, and remain in effect until October 1, 2021 when the next regularly scheduled updates are set to occur.
Public Testimony on Proposal to Amend Adopted Board Resolution 20-11
A there was no public input Chair Eyster closed the public hearing at 6:50 p.m. Consideration to Adopt Resolution 21-4, Approving to Amend Adopted Board Resolution 20-11 Chair Eyster said he would entertain a motion from the Board.
* David Willis moved to adopt Resolution 21-4 (Exhibit L), approving to amend adopted Resolution 20-11, with an effective date of March 11, 2021, as presented. The motion carried unanimously 5:0.
Public Hearing on Proposal to Amend Chapter 5-Water, Section 1- Connections to Service, Policy 5-1-1, – Development/ Redevelopment Charges (DRCs) of SUB Board Policies
Chair Eyster opened this public hearing at 6:51 p.m.
Presentation on Proposal to Amend Chapter 5-Water, Section 1-Connections to Service, Policy 5-1-1 – DRCs
Jeff Nelson stated that this public hearing is for the proposal for Development/Redevelopment Charges that would go into effect October 1, 2021, which is after the construction season. For context, the reason why the Board is being asked to consider these rates tonight is because the developers have requested advance notice of when the rates would change, and they requested the change in the rates be after the construction season.
Greg Miller provided a presentation on Development/ Redevelopment Charges (DRC’s) – 2021 Annual Adjustment (see Exhibit M).
Public Testimony on Proposal to Amend Chapter 5-Water, Section 1-Connections to Service, Policy 5-1-1 – DRCs
As there was no public input Chair Eyster closed the public hearing at 6:55 p.m.
Consideration to Adopt Resolution 21-5, Approving to Amend Chapter 5-Water, Section 1-Connections to Service, Policy 5-1-1 – DRCs
Being no discussion, Chair Eyster said he would entertain a motion from the Board.
* David Willis moved to adopt Resolution 21-5 (Exhibit N), approving the increase adjustment in Water DRC’s, as presented. The motion carried unanimously 5:0.
Business from the General Manager
Consideration to Adopt Resolution 21-6, Approving Request for Special Procurement
Jeff Nelson referred to the staff report; Examination and Findings (Exhibit O) regarding this request for special procurement with Confluence Engineering.
Joe Leahy noted that Water Division staff did an excellent job procuring this memorandum for special procurement, which exempts this particular purchase from competitive bidding.
* John DeWenter moved to adopt Resolution 21-6 (Exhibit P), approving Special Procurement and authorizing the General Manager to implement the Special Procurement for Confluence Engineering, LLC, based on the Examination and Findings staff report, as presented. Following discussion, the motion carried unanimously 5:0.
Social Media Outreach Update
Mr. Nelson discussed a memo provided by Meredith Clark on Additional Exposure for Public Hearing Announcement (Exhibit Q) and explained that this was in response to the Board’s request for recommendations regarding increased promotion around SUB’s public hearing notifications, as well as review plans via an accessibility/inclusion lens.
Draft Net Neighborhood Application
Referring to his memo on Telecom = Net Neighborhood Contract Review (Exhibit R) Jeff Nelson shared that the Board directed that a SUB Net Neighborhood (last mile) project be required to use SUB’s (middle mile) dark fiber service. An updated Net Neighborhood Agreement with propose language is enclosed (Exhibit S) for the Board’s consideration.
DeWenter suggested the second sentence in Section 13.1 read something along this line: “The Provider agrees to acquire dark fiber service to the maximum extent practical from this net neighborhood to whatever regional internet exchange the provider is using for the duration of this agreement, as a condition of this agreement.
He said this would essentially tell a provider that they are required to use SUB’s middle mile to the maximum extend practical before they link into some other fiber network taking their signal to internet exchange.
Following discussion, the Board took no action. Chair Eyster suggested that the General Manager work with SUB legal counsel to prepare some language to include in the net neighborhood agreement and to elaborate why this concept would undermine the net neighborhood idea.
Extension of Temporary Easement to Willamalane
Jeff Nelson provided the Board a memo on Extension of Temporary Easement (Exhibit T) and explained that the Board had previously approved a temporary easement to Willamalane on the Georgia Pacific property. Willamalane has requested an extension and referred to the Second Amendment to the Intergovernment Agreement for Recreational Equestrian Use (Exhibit U).
* Davis Willis moved to authorize the General Manager to execute the Second Amendment to Temporary Easement to Willamalane and authorize the General Manager discretion to execute any similar requests for extension. The motion carried unanimously 5:0.
General Manager Updates
Chair Eyster referred to the updates from General Manager Nelson provided to the Board for review prior to tonight: A presentation from Greg Miller on McKenzie Treatment Plant Progress (Exhibit V), a memo on In-Lieu-Of-Tax Update (Exhibit W), and a memo on Telecom Update (Exhibit X).
Following brief discussion on the McKenzie Treatment Plant, Jeff Nelson shared a brief update on the Downtown Voltage Conversion. SUB has an authorization from the SUB Board to move forward with an engineering consultant to work with the building owners.
Special Meeting May 5, 2021
Mr. Nelson shared that a joint special meeting with SUB and Rainbow Water District (RWD) is being considered for May 5 to for the consultant to give a presentation to both Boards on the Water System Master Plan (WSMP). The WSMP is for the entire Springfield community including those areas served by RWD as well as SUB. The Board expressed its interest in moving forward with this joint meeting.
Other Business from the Board
Joe Leahy, SUB legal counsel provided a training on ethics to SUB Board members and reviewed the hypotheticals included with his memo on SUB Board Ethics Refresher (Exhibit Y), which was provided to the Board for its review prior to the meeting tonight.
General Manager Form Review and Process
Chair Eyster shared that the Board was provided with a copy of the General Manager Performance Evaluation form (Exhibit Z) and explained that the Board is to bring this form to the executive session planned for the General Manager Performance Evaluation in April. The form is to be used only as a guide for discussion, which is to be shared with the General Manager at a later date.
Board Member Updates
Chair Eyster reminded the Board that a Doodle poll will be sent out for scheduling a Board Retreat Work Session. He asked Board members to respond to the poll with their availability.
Chair Eyster recognized the new Springfield City Counselor, Damien Pitts, who was sworn in on March 8.
Eyster also reminded the Board of the Statement of Economic Interest filing deadline coming up on April 15.
Jeff Nelson recommend after the Board holds its General Manager performance evaluation that the Board provide one statement of evaluation to him and that there be a draft statement that would go out to the public, as the Board would need to take action on that statement, if that is something that the Board would want to make a decision on.
John DeWenter noted that two members of the management team, Bob Fondren and Janis Brew, have retired or will retire soon. He suggested a letter from the Chair be sent to them thanking them for their many years of service.
Future Board Agendas
Initial Review of Telecom Strategy
No discussion, due to time.
The meeting was adjourned by consensus at 8:05 p.m.
Mike Eyster, Board Chair
Jeff Nelson, Board Secretary