Item A: Joint Meeting with EWEB Board

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? Board approval of the Steam Utility Transition Policy on September 16, which provides the basis for developing a long-term plan to shut down the steam system. All steam customers were contacted in writing and notified that the plan will be presented to the Board in December. ? To allow for a reasonable transition period to an alternative fuel for all downtown customers, sufficient load is needed from the remaining customers. To that end, discussions with PeaceHealth (3-year contract renewal) and the UO (preserving the EWEB /UO system inter-tie) have continued. A contingency plan for re-configuring steam generation with current customer load was initiated in the event a joint EWEB/UO steam supply agreement is not possible. ? On October 7, a draft outline for a “Steam Utility Transition Plan” was presented to the Board, emphasizing the following considerations: Reasonable transition period for customers o Financial assistance for customer steam system conversion costs o Electric utility cost impacts o Community and social impacts o Mitigating environmental impacts and pursuing energy efficiency opportunities o ? Staff is pursuing funding assistance through the Oregon Department of Energy (ODOE) that can be used to help individual customers transition to an alternate space and water heating system. Preliminary discussions with ODOE have been positive, and we expect to learn more information before the end of November. For more information, please contact Mike Logan @ 341-1839. Drinking Water Protections at Clear Lake Clear Lake Resort is located at the headwaters of the McKenzie River, which is the sole source of drinking water for the City of Eugene. It is a pristine lake that provides opportunities for non- motorized recreation, including rental cabins, a restaurant/store, and fishing/boating facilities. The property was recently acquired by Linn County from the Santiam Fish and Game Association. The Clear Lake Resort is located on US Forest Service land and is operated under a special use permit. As part of the property negotiations, Linn County agreed to make a number of facility improvements, including the replacement/relocation of two diesel generators that provide power to the resort. These generators are fueled by an aging 1,000 gallon diesel tank. This single-walled diesel tank sits within 200 feet of the lake and poses a potential threat to the water quality in the unlikely event of a spill. Additional risk includes potential for fuel truck accidents when accessing the site during winter months. Linn County Parks and Recreation (LCPR) plans to move the existing diesel tank to a site that is further away from the lake, and to replace the current tank with a new larger, double-walled tank. These proposed improvements are required to go through the National Environmental Policy Act (NEPA) process, since they are on US Forest Service land and include ground disturbance. As soon as a complete project proposal is submitted by LCPR, the Forest Service can begin its study and analysis, which will take several months. Linn County is seeking federal funding for the relocation and upgrade of the fuel tank and generators. However, given a bleak picture for 5