November 2021 Board Meeting

Date

Time

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.

November 10, 2021

Executive Session – 5:00 p.m.

The Board plans to hold this non-public session pursuant to ORS 40.225, ORS 192.660(2)(e), and 192.660(2)(f); attorney-client privilege, to conduct deliberations with persons designated to negotiate real property transactions, and to consider information or records that are exempt by law from public disclosure, including written advice from attorneys.

Regular Board Meeting – 6:00 p.m.

Detailed agenda further down the page. The public is encouraged to join the public meetings via phone or internet. This meeting is scheduled to commence at approximately 6:00 p.m., after the conclusion of the 5:00 p.m. executive session. Members of the public wishing to address the Board will be prompted to share general comments related to utility business during Business from the Audience, and will be prompted during the public hearings to share input to the Board on the proposed 2022 Budget and proposed utility rates for 2022. The public may also submit public comment in advance to be entered into the record via email by Noon, November 10, by using our Contact Us form.

Instructions to Join 6:00 p.m. Regular Board Meeting and 8:00 p.m. Special 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 – approximately 7:30 p.m.

The Board also plans to meet in non-public executive session, if needed, pursuant to ORS 40.225, ORS 192.660(2)(e), and 192.660(2)(f); attorney-client privilege, to conduct further deliberations with persons designated to negotiate real property transactions and to consider information or records that are exempt by law from public disclosure, including written advice from attorneys. This meeting will commence after the conclusion of the 6:00 p.m. Board meeting.

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

The purpose of this public meeting is to allow potential Board action following executive session. The meeting will commence after conclusion of the 7:30 p.m. executive session, if needed.


Regular Board Meeting – 6:00 p.m.

Agenda

I. Call to Order

  • A. Pledge of Allegiance

II. Business from the Audience – 10 min

III. Business from the Board

  • A. Consent Agenda – Action Items – 5 min
    • 1. Approval of Minutes
    • 2. Award/Approve Bids/Proposals
      • a. RFP 2021-GM1, Grant Writing/Administration Consultant Services
      • b. BID 19-21, Glenwood Substation Earthwork and Foundations
      • c. BID 2021-37, Ductile Iron Fittings & Butterfly Valves
      • d. BID 2021-38, Field Lock Restraint Gaskets
      • e. BID 2021-39, Willamette SSFP Re-sand Filter Bed - Sand Filter Media
      • f. SOQ 2021-40, Murraysmith-Willamette Surface Water Capacity Study
      • g. Sole Source ESRI – GIS Software
      • h. Request for Temporary Purchasing Changes to Accommodate Market Conditions
    • 3. Approval of Accounts Paid Listing
      • B. First Public Hearing on Proposed 2022 Utility Budget – 10 min
  • C. First Public Hearing on Proposed Water Rates Increase – 10 min
  • D. First Public Hearing on Proposed Electric Rates Increase – 10 min
  • E. First Public Hearing on Proposed Dark Fiber Rates Increase – 10 min

IV. Business from the General Manager

  • A. Presentation from Oregon Municipal Electric Utility Association – 15 min
  • B. Presentation from Public Power Council – 15 min
  • C. Glenwood Update 5 min D. 2022 Goals – 5 min
  • E. Telecommunications Update – 5 min
  • F. Update on Diversity, Equity, and Inclusion – 5 min
  • G. 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: 120 min

Minutes

Regular Board Meeting – November 10, 2021

Minutes

Board approval at February 9, 2022 Regular Board Meeting

Attendance

In-Person:

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

Staff: Jeff Nelson; Cindy Flaherty; Joe Leahy, Matt Dahlstrom, Attorneys for the Board.

Remote:

Staff: Cynthia Scoble; Sanjeev King; Greg Miller; Nicole Dalke; Logan Fry; Seth Lacey.

Others: Jennifer Joly, OMEU; Scott Simms, PPC; Jeff Paschall, City of Springfield; Tom Hutton, IBEW Local 659; S. Elliott; James Russell; George Jesse.

Call to Order

Chair Eyster called the regular board meeting of the Springfield Utility Board (SUB) to order at 6:05 p.m. and led everyone in the Pledge of Allegiance.

Business from the Audience

None.

Business from the Board

Consent Agenda

Minutes

  • September 8, 2021, Regular Board Meeting

Award/Approval of Bids/Proposals

  • RFP2021-GM1, Grant Writing/Administration Consultant Services Request for Proposal. One formal proposal was submitted from ICF Incorporated, LLC, and included with the RFP2021-GM1. SUB staff recommends the bid for RFP2021-GM1 be considered by the Board to be awarded to ICF Incorporated. (Removed from Consent Agenda)
  • BID 19-21, Glenwood Substation Earthwork and Foundations. Electric Division staff recommends purchase to Pacific Excavation for a total amount of $1,190,200.00. (Removed from Consent Agenda)
  • Bid 2021-37 Ductile Iron Fittings & Butterfly Valves. Water Division staff recommend award of this bid to H.D. Fowler for a total amount of $121,800.24 (Exhibit A).
  • Bid 2021-38, Field Lock Restraint Gaskets. Water Division staff recommend award of this bid to Consolidated Supply for a total amount of $92,500.98 (Exhibit B).
  • Bid 2021-39, Willamette SSFP Re-sand Filter Bed – Slow Sand Filter Media. Water Division staff recommends the Board award this bid to Knife River for an amount of $245,472.30 (Exhibit C).
  • SOQ 2021-40, Murraysmith-Willamette Surface Water Capacity Study. Water Division staff seeks Board approval of $97,593.00 to contract with Murraysmith to complete a capacity analysis of the Willamette Slow Sand Filtration Plant facilities (Exhibit D).
  • Sole Source ESRI – GIS Software. Water Division staff requests Board approval to enter into a 1-year contract agreement with Environmental Systems Research Institute (ESRI) for ArcGIS software and subscription services for an amount of $65,400.00 (Exhibit E).
  • Temporary Purchasing Changes to Accommodate Market Conditions. Water Division staff are requesting Board authorization to implement a temporary change in purchasing procedure for immediate procurement for purchases of stock materials and goods for the Water Division that complies with ORS 279B.070, increasing the amount to be awarded without Board approval from $50,000.00 to $100,000.00, and to raise the General Manager’s signing authority under Board Policy, Section 3-7-6-2-B to match the increase. (Removed from Consent Agenda)

Accounts Paid - October 2021

Vice-Chair Scherer requested items 2.a., 2.b., and 2.h. be removed from the Consent Agenda for separate discussion and to consider a separate motion on each of these items.

* Mark Molina moved to approve the Consent Agenda, as modified, with items 2.a., 2.b., and 2.h. removed. David Willis seconded the motion. This motion carried unanimously 5:0.

Following discussion on removed item 2.a. RFP2021-GM1, Grant Writing/Administration Consultant Services Request for Proposal (Exhibit F), the Board took the following action:

* Mark Molina moved to approve RFP2021-GM1, Grant Writing/Administration Consultant Services Request for Proposal, as modified with a cap of $49,999.00, which may be adjusted as funds are reimbursed into the trust account. John DeWenter seconded the motion. This motion carried unanimously 5:0.

Following discussion on removed item 2.b. BID 19-21, Glenwood Substation Earthwork and Foundations (Exhibit G); the Board took the following action:

* Robert Scherer moved to approve BID 19-21, Glenwood Substation Earthwork and Foundations, as presented. John DeWenter seconded the motion. This motion carried unanimously 5:0.

Following discussion on removed item 2.h. Request for Temporary Purchasing Changes to Accommodate Market Conditions for the Water Division (Exhibit H), the Board took the following action:

* Robert Scherer moved to approve the Request for Temporary Purchasing Changes to Accommodate Market Conditions for the Water Division in that the Board authorize the temporary change in purchasing procedure for immediate procurement for purchases of stock materials and goods for the Water Division that complies with ORS 279B.070, increasing the amount to be awarded without Board approval from $50,000.00 to $100,000.00, and to raise the General Manager’s signing authority under Board Policy, Section 3-7-6-2-B to match the increase, as modified, so that instead of reviewing it in six months, the temporary procedure is to sunset in six months, which will allow the Board to revisit the issue, to either continue the authorization if needed, or it will end at the six month period. John DeWenter seconded the motion. This motion carried unanimously 5:0.

Public Hearings Process

Jeff Nelson shared a brief update on the public hearings process. Tonight are the first of two public hearings on the proposed 2022 Budget and public hearings on the proposed increase to rates. The Board will not take any action at tonight’s meeting. The second public hearings will be held during the December 8 regular Board meeting, when the Board is expected to consider taking action.

Presentation on Proposed 2022 Utility Budget

Noting that the presentation 2022 Proposed Budget (Exhibit I) is also available on SUB’s website, Mr. Nelson provided his presentation on the proposed 2022 Utility Operating Budget.

First Public Hearing On Proposed 2022 Utility Budget

Following the presentation, Chair Eyster opened the public hearing at 6:21 p.m. and asked for any public comment on the 2022 Proposed Budget.

Hearing no public comments, Chair Eyster closed the public hearing at 6:22 p.m.

Presentation on Proposed Water Rate Increase

Jeff Nelson shared his presentation on Proposed 5.0% Water Rate Change Effective January 1, 2022 – 1st Public Hearing (Exhibit J).

First Public Hearing On Proposed Water Rate Increase

Following the presentation, Chair Eyster opened the public hearing at 6:29 p.m. and asked for any public comment on the proposed 5.0% water rate increase.

George Jesse of Springfield shared concern of ever increasing utility rates and offered comments against rate increases. Mr. Jesse noted that SUB’s rates are relatively low and he hoped SUB can continue to keep rates low.

As there were no other public comments, Chair Eyster closed the public hearing at 6:32 p.m.

Presentation on Proposed Electric Rate Increase

Following brief discussion on feedback from the Board on rates, Jeff Nelson noted that per the Board’s direction, he would talk on why the rates are proposed and how things are lining up relative to inflation. Mr. Nelson then reviewed his overheads for his presentation on April 2022 Proposed Electric Rate Increase – 1st Public Hearing (Exhibit K).

First Public Hearing on Proposed Electric Rates

Following the presentation, Chair Eyster opened the public hearing at 6:45 p.m. and asked for any public comment on the proposed 2.0% electric rate increase.

Hearing no public comments, Chair Eyster closed the public hearing at 6:46 p.m.

Presentation on Proposed Dark Fiber Rate Increase

Jeff Nelson shared his presentation on Dark Fiber Rate Schedule: Proposed Rate Increase (Exhibit L) and reviewed his overheads on the proposed 2.5% increase to dark fiber rates.

First Public Hearing on On Proposed Dark Fiber Rate Increase

Following Mr. Nelson’s presentation, Chair Eyster opened the public hearing at 6:51 p.m. and asked for any public comment on the proposed 2.5% dark fiber rate increase.

As there were no public comments, Chair Eyster closed the public hearing at 6:52 p.m.

Business from the General Manager

Presentation from Oregon Municipal Electric Utility Association (OMEU)

Jennifer Joly, Director, OMEU, provided a 20-minute presentation to the Board on Oregon Legislative Update for Municipal Electric Utilities (Exhibit M).

Following discussion, the Board thanked Ms. Joly for a very interesting presentation.

Presentation from Pacific Power Council (PPC)

Scott Simms, Executive Director, PPC, share a 30-minute presentation Public Power Council (Exhibit N).

Following discussion, the Board thanked Mr. Simms for his thorough and informative presentation.

Glenwood Update

Jeff Nelson shared a brief update on a conversation he shared with SUB customer Michael Koivula who reached out to him recently with some concerns regarding the Tree Felling Permit process for the Glenwood property from a broad perspective that included, but not limited to, wildfire mitigation, habitat, and species management.

SUB Legal Counsel Joe Leahy summarized next steps in that SUB thank Mr. Koivula for his input and concerns and that General Manager Nelson refer the concerns to our planning commissioner for further review, and Mr. Koivula will receive further information as SUB complies with the law.

2022 Goals

In consideration of time, this item was pushed out to the December Board meeting.

Telecommunication

None.

Update Update on Diversity, Equity, and Inclusion

This item was also pushed out to the December Board meeting.

TEAM Springfield Update

None.

Other Business from the Board

Board Member Updates Chair Eyster said that the Board is planning to schedule a retreat work session in January 2022. A Doodle poll will be sent out to Board members to aid in scheduling the retreat. Chair Eyster shared that he and Jeff Nelson met with EPUD and provided a brief update on that meeting and noted follow up correspondence.

Future Board Agenda Items

Jeff Nelson offered a brief update that the consultants on the Commercial Industrial Customer Survey are available to present the findings of that survey on December 8. Mr. Nelson noted that the consultants are from the east coast and therefore 5:00 p.m. will be dedicated for their presentation.

Adjournment

The meeting was adjourned by consensus at 8:00 p.m.

Mike Eyster, Board Chair

Jeff Nelson, Board Secretary