HomeMy WebLinkAboutMinutes 1991i , .
a
Evanston Energy Alternatives Task Force
Feting of January 10, 1991
Members Present: Kraft, Iauterbach, Pabst, Raedle, Schakowsky,
Suhr, T bi.tney
Members Absent: Dienner, Dineen, wu: tgering, Iappitz
Presiding Official: James K. Suhr, Chair
Staff Present: Judith A. Aiello, Assistant City Manager
Dennis Marino, Econamic Develcgmnt Planner
Guests: Robert Dwyer and John Klowsky, Commonwealth Pinson
The meeting was called to order at 7:35 P.M. Minutes of the October 9, 1990
meeting were unanimously apProved•
Commonwealth E dison's 5-Year Capital Ir mrovrment Plan for Evanston, - John
Klowsky, the District Superintendent of the North Suburban Area for Common-
wealth Edison, rode a presentation concerning the impact of the company's 5-
year capiLul improvement plan on Evanston. Klowsky indicated that the new
plan would actually expand Edison's existing ng reliability abi l ; ty irnprovesment plan for
Evanston. $15 million is reportedly budgeted for improvements in Evanston
during the next, five years. Klowsky added that the following expenditures
were incurred in Evanston in 1988-90:
1988 - $677,000
1989 - S2.3 million
1990 - $3.0 million
asked what bTrovellen the past and planned expenditures financed,
Klowsky did not itamize expenditures, but he provided the following:
1. Evanston "is getting new transformers."
2. "Feeder work and substation work" will be done.
3. Evanston will receive "addi.tional capacity" and most expendi-
tures are to handle "a bigger load."
4. Removal of C-2 free the Research Park by 1993 and constructim
of a new substation to serve the Northeast and Downtown areas.
5. New feeder ties ("SF6 switch gear") will be installed.
Energy Alternatives Task Force
Meeting of 1/10/91 -2-
The total capital improvement budget for the entire Edison system for 1991-95
is $4.95 billion. $3.175 billion will be for transmission and distribution
system, representing a in increase in these area, over the previous capital
improvement budget.
Normal, Raedl.e suggested that Rlowsky prepare a detailed written statement of
the capital improvements planned for Evanston and cuhmit this to the Task
Force.
Ur date on the Northwest Mtani,cipal Con f Crence Task Force - Judith Aiello
reported that the City of Evanston continues to participate in the Northwest
Mmircipal conference's Camrnealth Edison Task Force. A Northwest confer-
ence Negotiating Team has met with Edison executives on two occasions to
develop a nudel franchise agreement. Reference was also made to the
c mmmity of Inverness, which is operating without a franchise ay,.r_A=1K=jt,
but continues to receive power frcn Edison.
The Task Force troved by unanimous vote into Executive Session at 8:35 P.M. to
discuss pending litigation. At 9:20 P.M., the Task Force reconvened into
Public Session and adjourned at 9:25 P.M.
Next Meetinq - The nect meeting of the Task Force will be Thursday,
Februazy 7, 1991 at 7:00 P.M.
Dennis marino
F=rumic Development Planner
Office of the City Manager
IM:ct
• yD•1 z 1.110'r. V ti' • •�•�'
Meeting of Febuuary 7, 1991
Members Present: Dienner, Haxt4erin4, Kraft, T auterbach, Lippi.tz,
Schakiawsky, Suhr, Whitney
Members .Absent: Dineen, Pabst, Raed].e
Presiding official: James Suhr, Chair
Staff Present: Aiello, Marino
[,nests: John C'ouxtney, John Moran, and Greg Ottirnger of Duncan & Allen,
Attorneys-atriaw
The meeting was called to order at 7:08 P.M. Kest Whitney motioned to adjourn
into Executive Session to discuss real estate acquisition. The motion was
seconded and unanimously approved on a roll call vote (8 ayes - 0 nay) .
The public meeting was reconvened at 9:75 P.M. The next meating of the Task
Force was scheduled for March 14, 1991 at 7:00 P.M. The March meeting wzll
be chaired by Ned lautezbarh due to Jim Suhr's planned absence.
Members requested that staff attempt to sere participation of representa-
tives from one or more of the local n uucipal electric eoapanies (Geneva,
Napery 11e, winnetka) for the next meeting. David Kraft volunteered to -_
sumasra ze the public ; c benefits of m zUcipal electric system.
The meeting was adjourned at 9:38 P.M.
MC ct
w
Meeting of March 13, 1991
Members Present: Dienner, Hartgering, Lauterbadn, Pabst, Raedle
Whitney
r ates , Absent: Dineen, Kraft, Lippitz, Schakowsky, Suhr
Presiding official: Ned iauterbach, Acting Cmir
Staff Present: Aiello, Marino
Guests: r'ari.o Perez, Director, Electric Utilities, City of Naperville
The meeting was called to order at 7:35 p.m. Minutes of the January to and
February 7, 1991 meetings were approved unanimously. David Kraft's
presentation was rescheduled for the April meeting of the Task Force. A
member requested that staff present, at the next meeting, a schedule of
remaining ng work to be conduc'"93 by the Task Force.
Mr. Perez has served as the Director of the Naperville Electric Utility for
one year. He worked previously as the Superintendent of the Batavia Electric
system and as an Engineering Manager with the Illinois N micipal Electric
Agency.
Naperville Electric, which was created in 1898, operates currently with 82
employees. Ps a result of the growth of Naperville, including the annexation
of adjacent areas, Ira. Perez stated that he planned to add five or more
employees in 1991.
Most employees of irzuLi.cipal utilities are unionized. Nan -management
employees of Naperville Electric are members of the Brotherhood of Electric
Workers. Many of Napery: l 7 e's employes worked previously for investor -owned
utilities. Perez has not incurred any diffiallties in recruiting aj:.pL;Ar.;.ate
Naperville reportedly operates at a higher level of efficiency than many
investor -owned utilities, as insured in the following manner. There are 433
retail customers to every Naperville Electric employee, while the icy
average is 288 customers to one employee. Naperville sells 7,000 kWh per
employee, while the irustiy average is 10,000 kSib per employee.
EFATF Minutes
Meeting Of March 13, 1991 -2-
The utility's fixed assets are approximately S100 million. Historically, an
annual surplus is generated which had resulted in a multi -year fund balance
of S33 million in the 1980's when the utility was placed for sale. After the
utility was put out to bid, the City Council reconsidered and decided to
continue to operate the system. This occurred for two reasons: the purchase
offers were lower than anticipated; and a consultant's study recommended that
it was more economical to continue to operate the utility than to sell it at
the prices offered.
The utility initiated a major capital improvement program based on this
decision in order to compensate for deferred investment in facilities and
equipment due to the anticipated sale. currently, four substations are under
construction, and numerous distribution improvements are planned to minimize
reliability problems. As a result of Naperville Electric's substantial cash
surplus most of the improvements have been financed without issuing bonds.
Mr. Perez cited several advantages of a rmzdcipally-awned utility cogaared to
an investor -owned utility. 'These included the following:
1. Service is superior due to the ability of customers to contact
the utility's leadership or the Mayor of Naperville to receive
priority attention to problems.
2. Naperville Electric is 30% less expensive than comparable service
from Coumnwealth Edison.
3. Net annual income generated by a municipal utility is available to
be reinvested in infrastructure instead of being paid to shareholders.
4. A utility tax is charged; the are deposited in the city's
General Fund.
5. There is a greater incentive to engage in demand -side conservation
because the m mi_cipal utility, which is purchasing bulk power
instead of generating it, can reduce its expenses by purchasing
less, especially if it is able to reduce peak demand.
Mr. Peres acknowleded that there were municipal utilities which were
problematic and less effective than investor-awmed utilities. This is
especially true if a m inicipal utility has insufficient funding for capital
mTrwammesnts and is forced to use outdated equipment. Municipal utilities
also decline when surplus funds are removed from the utility to cover a
City's General Fund expenses, thereby elimirnating internally -generated
resources for repair and modernization. Perez contended that it is essential
for a municipal utility to establish aw,,,p..ate rules and regulations so
that it is "operated like a business . " Hiring of poorly --trained or
inexperienced staff will also undermine the rPIiAbiIity of a utility.
EEATF Minutes
rt es
Meeting of 3/13/91 -3-
Naperville purchases its pmver frcm CaT orrdealth Edison. under a 10--year
agreement which includes a demand charge, which is fixed for the term of the
agreement, and an energy charge which escalates 5% per year during the first
five years of the cont-act and may go up to 10% in years 6 through lo.
Naperville is in the fourth year of the contract.
Mr. Perez reported that Cim Ed has performed .its tram ssum role without
any problem. The On-i ci nn to contract, with Carat Ed was based on a
ca aination of price and rel i ahi l i ty. EdLson was actually rime expensive
than III, but it was perceived as mere reliable. Two other mmicipal
electric uilities in the Naperville area (St. Charles and Batavia) are
purchasing power from C= Ed. Rock Falls is purchasing pox fxun ImEA
(actually Springfield).
As a result of annexing unincorporated areas, Naperville has purchased erg Ed
equipment and facilities at boat value without major carplications .
Mr. Perez Was thanked for his presentation, and the meeting Was adjourned at
9:15 p.m. with no further business.
DRM:ct
Dennis R. Marino
Econanic Develop nent Planner
G. YI'4' ••.r'
Meeting of June 6, 1991
Members Present: David Kraft, tied lauterbach, Charles Lsppitz,
E tm m d Pabst, tiotman Raedle, James Suhr
Medxxs Absent: Ann Diener, Rosanne Dineen, William Hartgering,
Jan Schakowsl:y, Kenneth Whitney
staff Present: Judith Aiello, Dennis Marino
The meeting was convened at 7:50 P.M. by Chairman Suhr. The minutes of the
March 1.3, 1991 meeting were approved as drafted by urzTd mas vote (6-0).
David Kraft distributed stri b to rmaterials describing the benefits of municipaliza-
tion, and announced public hearings to be held on June 17 and 18 concerning
the renewal of the electric franchise with C=mruealth Edison by the city of
Chicago.
Amice colLins, the new Commonwealth Edison Superintendent for the North
Suburban Region, was introduced and offered the opportunity to address the
Task Force. She described her history with Commonwealth Edison, noted that
she was an Eranstton resident, and expressed Com E d's desire to open
discussions with the City. She also requested a copy of the preliminary
fpAcihi 1 i ty report ccmleted by Duncan & Allen. Task Force members explained
that the report Was confidential. .
At 8 :15 P.M. the Task Force voted l Tna n i rro+, ly to enter E mmtive Session to
discuss pending litigation (motion by Lauterbach, second by Raedle) .
The public meeting ues reconvened at 11:10 P.M. The next meeting 'Was
scheduled for July 3, 1991 at 7:30 A.M. The meeting was adjourned at 11:15
P.M.
Foonamic DevelgmMt Planner
DRM:ct
E
1 • i! S! •� y1: • �C
Meeting of July 3, 1991
Members Prevent: William Hartgering, charles Lippitz, Edmund Pabst,
Norman Raedle, Jim Suhr
Members Absent: Ann Diener, Rosanne Dineen, David Kraft, Ned
iauterbach, Jan Schakowsky, Kenneth Whitney
Staff Present: Judith A. Aiello, Pssi.s-tant City Manager
Dennis Marino, Economic Development Planner
presiding official: Jam K . Suhr, Clair
r
The meeting was convened at 7:40 A.M. by James Suhr. Due to the lack of a
quorum, action on the minutes of the June 6, 1991 meeting was deferred.
Chairman Suhr acknowledged communications submitted to the Task Force by
David Kraft and No=an Raedle. ter. Raedle highlighted the fact that the 1990
Annual Report of the Public Service cm any of New Mexico stated that the
city of Albuquerque intends to engage in a carpetitive bid process before
issuing a franchise agreement with the Public Service Utility or any other
entity.
By unanimous vote, the Task Force entered Executive Session at 7:50 AM. to
discuss land acquisition.
the public meeting was reconvened at 9:25 A.M. and irr=rii.ately adjourned.
IM:ct
• Do ID . ?k. 1, y+ W.
Members Present. Ann Dienner, Rosanne Dineen, William Hartgeri.rg, David
Kraft, Ned Lauterbacn, Charles Li.ppitz, Eduard Pabst,
Norman Raedie, Jan Schakawsky, Jim Suhr
MsnberS Absent: Kenneth Whitney
Staff Present: Dennis Marano, Economic Develounent Planner
Presiding official: Jim Suhr, chair
Su mary of Action: The meeting was convened at 7:35 P.M. by Jim Suhr. The
minutes of the following Energy Alternatives Task Force meetings were
approved unanimnLsly as drafted: June 6, 1991 and July 3, 1991. Mr. Suhr
acknowledged receipt of cmmamications, including two E9At MM REVIEW
articles covering the DLmcan and Allen Study. He summarized the articles and
requested that all Task Force men bers read these articles if they had not had
the opportunity to do so before the meeting. Mr. Suhr stressed that the
Task Force does not have authority on its own to release the contents of the
Study. Such action would require approval of the Administration & Public
Works Committee of the City council. He concluded by stating that public
education and information issues would be discussed later in the meeting.
Mr. suhr also requested that the C=mattee discuss the Northwmst Mrn; cipal
Conference (r,IXI�r-) Model Franchise pgre-erent later in the meeting.
Jan Schakowsky asked %by the Task Force is not at this point releasing an
Executive sunnary of the Duncan & Allen Report. Jim Suhr responded that the
Task Force does not have authority to do so. Yz. Schaltowsky stated that she
was questioning the decision not the process. She stated that she was
imaged that TEE EvANmW REVIEW was raking hasty decisions and jumping to
conclusions about the narticipalization option without any substantive
information. The recent editorial., she added, had created a negative clistate
for the discussion of the rruni.cipalization option. Ms. Schakowsky also
camiented that the council meeting during which the Duncan & Allen consulting
team made its presentation should have been in open session.
in reference to an outline of the items agreed to by the Northwest Municipal
Conference and ccacrmnwealth Edison, ins. Sc-.akowsky stated that she was
appalled by the content. Shethat the description of a fifty year
tern as flexible was incredible. vs. schakowsky wed that the addition of =_
free traffic signals wus of sore value, but not if it resulted in an increase
in consumer rates. she concluded that the outline of the proposed agreement
was different from the content of the a��-=mat as summarized in a recent
caia= S'@FfiIlMM article about the Model Franchise.
E.A.T.F. Minutes
Meeting of 10/3/91 -2-
Jun Suhr cc=nented that the discussion was craving array from the agenda, arcs
that he would like to crave on to other issues and return to this discussion
later. Charles arpitz requested more time now to give feedback on the
NortiTdest Mzdcipa? Conference outline of a proposed Model Franchise. Mr.
Lippitz comrented that the outlint. represented a cop out to Commonwealth
Edison. Mr Buhr suggested that, given the concerns of a number of Task Force
mercers about the t{rZ,!C outline, he would suggest that the City's representa-
tive should not vote aye or nay on the NSr1,1C Z-bdel Franchise Agreement until
marbers of the Task Force had a ch-mce to revie:v all facets of the document.
William Hartgerirg questioned wrheU,,er the t7e= Agree Tent binds the City to
accept its content. Jim Suhr and Dennis Y rino added that the City is not
required to accept the terms of the freafC Agreement. Mr. FArtgering requested
that the City release the cmplete McZr_ document so that it may be analyzed
and discussed in detail.
Norman Raedle stated that he did not believe the Task Force should become
heavily involved with the NortlTm st V udcipal Conference process. Ned
rauterbach concurred. W Pabst suggested that Jim suhr contact Mayor Barr to
ask what her plans ray be with regard to the proposed t�Z9C Model Franchise
Agreement. Charles a itz stated that the Mayor should hear the ecmTents of
the: Task Force with retard to this issue. David Kraft stated that it is the
Task Force Is obligation to alert the Mayor to this problem.
Jan Schakawsky motioned that the Task Force advise the Mayor to remain
neutral on the Proposed Franchise Agreement until the details of the proposed
Agreement are analyzed. William Fartgerir i suggested that the Task Force
encourage the Mayor to influence the Conference to reconsider the content of
its Model Agreement.
Norman Raedle requested that the issue be raised informally with the Mayor
instead of as part of a formal motion. Ned lauterbach concurred. Committee
members agreed by consensus that Jim Suhr would contact the Mayor to summar-
ize the BC concerns of Task Force members about the proposed NModel
Franchise AJ�LG�IIGIIt.
Mi rbers next discussed a recent CSICAM 5@t-TMES article about the Duncan &
Allen study. William Fiartgering stated that he chose not to talk to the
reporter. Fie believed that the Task Force should speak to this issue as one
body. David Kraft stated that he was called by the reporter but, instead,
referred the reporter to Jim Suhr and Judy Aiello. Jim Suhr reported that he
dial respond to the reporter's request for an interview, but only provided
background information.
William Fzrtgering asked if the City of Evanston expected to secure more
favorable terms f= its franchise agreement than the terns included in the
proposed NRE Agreement. Jan Schaka=rrsky added that the City's process &"ild
become mire open.
' E.A.T.F. Minutes
r�tima3 of 10/3/91 -3-
Next, Jim Suhr acknowledged a letter received fran Eunice Collins, North
Suburban Superintendent for Cm Ed, and asked that it be distributed to Task
Force noTbers. Mr. Suhr also acknowledged the presence of Ms. Collins at the
meeting.
On the basis of a unanimous vote, the Task Force convened into Dcecutive
Session at 8:15 P.M. to discuss potential land acquisition. The Task Force
reconvened into open session at 8:30 P.M.
Jim Suhr stated that Mayor Barr had informed him that the Negotiating Team
for the Electric Franchise would be appointed shortly. She stated that the
Team would include Eric Anderson, the City Manager; Jack siogel, the
Corporation Counsel; two Aldermen, and two mmkambers of the Task Force. Jim
Suhr statai that he would not be able to serve on the Team as requested by
Mayor Barr because of his schedule. Mr. Suhr added that Mayor Barr had
requested that the Task Force continue to work on the Request for Proposals
for a Power Supply Study.
He encouraged mm ambers of the Task Force who are interested in serving on the
Negotiating Team to contact him. Norman Raedle immediately stated that he
had no interest, and he believed that Task Force members should not serve on
the Negotiating Team.
Jim Suhr next suggested that, given the discussion at tonight's meeting,
three cmmi.ttees should be formed to report back to the Task Force at its
next meeting. His re=nrn..ndation to establish the following Ccamimtiittees was
agreed to by consensus:
1. Public Information & Education
2. Power Supply RFP
3. Model Franchiseft*W
The following members agreed to participate on the C]=dttees:
Public inform ti(M/7ducati.on
David Kraft, Charles Lippitz, Ed Pabst, Jan Schakawsky
Power Sumly RFP
Rosanne Dineen, Norman Raedle
Mq�!C Model. Franchise
Wil] ism iiartgering and Ned lal teftec +
E.A.T.F. Minutes
Meeting of 10/3/91 -4-
The discussion of the need for public release of information continued. Ed
Pabst suggested releasing the entire study. Charles Lippitz disagreed
because of materials included in the documents which might damage the City's
ability to negotiate. Jan schakowsky suggested the need for an interpret-
tive press release. Ed Pabst suggested ;he need for an op-ed article in THE
EVAN= REMIT. Several merbers commented that the idea of releasing the
entire report has to be reviewed.
Jan Schdkowsky moved that an Executive Summary of the Duncan & Allen Report
be prepared that will pass the approval of the A & PA Cannittee arxi the
Negotiating Team. Vlil]iam Nartgering seconded the motion. The motion
carried 6 - 3 with Ed Pabst, Norman Raedl.e, and Jim suhr voting nay.
Norm Raedl.e suggested that the release of the Report should be coupled to
other events. He recomended that the camdttee e:,raining this issue examine
a course independent of carpeting with eanTonwealth Edison's public
relations machine.
Ann Dienner cautioned that the Task Force mist be cautious about all the
information included in the Report being released to the public in the
context of negotiations. Jan SchakcrNsky added that there was a need to check
with Duncan & Allen to determine if they or their sources would have any
problems with a public release.
Ed Pabst stated that the education process must be started soon to ensure a
fair hearing for the 1a dcipalizat.ion option. Charles Lippitz added that
the municipalization option should not be foreclosed until the educational
process has an opportunity to proceed.
Jan Schakowsky stressed the need to keep all options open and to be prepared
to counter the k.,-,,-cr'Li.on that this is a "done deal" if the Northwest Muni.-
r-i.pal conference signs an unacceptable agreement with Can Ed. She added
that the Task Force sh.auld be meeting with editorial boards of newspapers as
part of its education
Jan SdWmwsky cautioned ,.. to be aware that there may be a conflict
between mni.cipal interests and residents' interests. she added the
municipalities may favor certain aspects of the MvbE Agreement, but
that the Task Force represents citizens.
The meeting as adjourned at 9:20 P.M.
Boonomic Develcpment Planner
APPROVED
MINUTES
ENERGY ALTERNATIVES TASK FORCE
Meeting of November 26, 1991
Members Present: Ann Dienner, Rosanne Dineen, William
Hartgeri.ng, David Kraft, Ned Lauterbach,
Charles Lippitz, Edmund Pabst, Norman
Raedle, Jan Schakowsky
Members Absent: Jim Suhr, Kenneth Whitney
Staff Present: Judith Aiello, Assistant City Manager,
Dennis Marino, Economic Development
Planner
Presiding Official: Ned Lauterbach, Acting Chair
Summary of Action:
The meeting was convened at 7:35 P.M. by Ned Lauterbach.
The minutes of the October 3, 1991 meeting were approved
unanimously as drafted with two additions: Roseanne Dineen and
David Kraft had volunteered during the October 3 meeting for
participating in the Northwest Municipal Conference Model
Franchise Committee which was one of three committees created by
the Task Force.
Ned Lauterbach acknowledged the communication from David
Kraft concerning his recommendations for public participation and
education. Charles Lippitz requested discussion of the letter
sent by Eunice Collins of Commonwealth Edison to Evanston
electric users on November 22nd. Mr. Lauterbach stated that he
also wanted to discuss this item under public information and
education.
Judith Aiello stated that Mayor Barr had requested that the
Task Force provide a status report to the Administration & Public
Works Committee for its meeting on December 16, 1991. The status
report would include the recommended Power Supply RFP and a plan
for Public Information and Education. Ms. Aiello added that
members of the Task Force would receive copies of the NWMC
Conference Model Franchise Agreement with Commonwealth Edison
when the agreement is distributed to City Council for its
December 16, 1991 meeting.
Jan Schakowsky asked if the March 13, 1991 franchise
expiration with Commonwealth Edison was considered a finite
deadline by which Council must act on a new agreement. Ms.
Aiello responded that the franchise expiration date was a focal
-2-
point for deliberations, but that the Power Supply RFP had not
yet been distributed. She also reminded the Task Force that
Bartlett and Inverness were continuing to receive electric
service from Cam Ed despite tho expiration of their respective
franchises.
Ed Pabst reported on ttift activities of the Public
Information and Education Committee. The Committee (Charles
Lippitz, Jan Schakowsky, David Kraft, Ed Pabst, Ann Dienner) had
met and discussed the recommended press release which Committee
members had distributed to Task Force members last week. Mr.
Pabst stated that there was a sense of urgency on the part of the
committee once the report had been released to Commonwealth
Edison.
He and other members had believed it was important to "beat
Com Ed to the punch" concerning the Duncan and Allen study. This
strategy was not successful given the letter of November 22,
1991. He stated that the Task Force should have met last week to
secure the agreement of the Task Force to move forward with the
press conference. Mr. Pabst also summarized the discussions by
phone with Mr. Lauterbach, Mr. Suhr, Mayor Barr and Judith Aiello
concerning why the previously scheduled press conference should
have been cancelled. With regard to the draft press release,
Mr. Pabst stated that he had become the spokesperson at the
request of the subcommittee.
Next, Mr. Pabst encouraged members to comment on the draft
press release. He began by stating that he proposed the addition
of a sentence which would indicate clearly that the Task Force
has no position regarding municipalization. The reason for
release of the Duncan and Allen report, he added, is because of
the belief that the public is entitled to know what is included
in the report.
Charles Lippitz stated that he was offended by the Com Ed
letter. He also expressed doubts about his investment of time in
the Task Force if the municipalization option is eliminated
before the Duncan and Allen Report is presented and discussed_
with the public. He added that the Task Force's work may have
been undercut politically by the articles and editorials in the
Evanston Review. He stated that he was sorry that the process
did not permit the Task Force to have an initial release before
Com Ed critiqued the report. He concluded by stating that a
vacuum in public information has been allowed and must be filled
immediately.
-3-
Jan 5chakowsky commented that the last meeting of the Task
Force should not have been cancelled and the Task Force should
have received notice sooner of the release of the report to Com
Ed. She added that the City must strengthen its position by
keeping its options open. Ms. Schakowsky contended that the Task
Force's leash was being shortened and it has been placed in the
defensive posture it had sought to avoid. She concluded that she
would not leave tonight without an effective plan. The content
of the Duncan and Allen report must be shared widely and the
public debate must no longer be dominated by Com Ed.
Roseanne Dineen questioned why the previous meeting was
cancelled and why it was not rescheduled sooner. Judith Aiello
responded that the cancellation was due to a staff shortage.
Ed Pabst made reference to recent articles about Chicago's
negotiations with Com Ed. He read the headline from a recent
article referring to Chicago's proposed agreement as a "done
deal." He stated that he did not want this to happen in
Evanston.
William Hartgering asked what options the Task Force had at
this time. Ned Lauterbach stated that he had invited the Mayor
to attend the meeting, but that she was not available. He added
that the Mayor should be involved in the press conference if
possible.
Ed Pabst objected to the approach of only convening a press
conference if the Mayor is involved or the Mayor approves of the
press conference. He hoped that the Mayor would participate if
not chair the Task Force's press conference. Mr. Pabst referred
to a resolution of the City Council at its September 16, 1991
meeting where it authorized and directed the Task Force to design
and implement a Comprehensive Citizen Participation Process. He
contended that this was sufficient authority for the Task Force
to hold a press conference.
Judith Aiello expressed the need for the Task Force and
other aspects of the City to move in a coordinated manner on this
issue.
William Hartgering questioned whether the Task Force has the
authority to issue a press release without additional approval.
He stated that the mandate for the Task Force is to implement a
comprehensive citizen education strategy. He added that a press
conference is a single action not part of a comprehensive citizen
education strategy.
W-
-4-
Ed Pabst stressed the urgency of the press conference now.
He stated that to wait for approval on December 16th was
bordering on derelection of duty. Jan 5chakowsky added that
waiting three weeks for a press conference was unacceptable.
William Hartgering asked if a board or committee had ever
issued a press release on its own.
Norm Raedle stated that the release of the Duncan and Allen
report into the public dorazi n and Cam Ed's letter to Evanston
citizens has caused him to be amenable to going forward with a
press conference immediately on the condition that the Mayor be
asked to participate.
Judith Aiello stated that the Task Force does not have a
budget to fund a public education and information effort at this
time. consequently, it would need to go to City Council for
funding. Ed Pabst and other members agreed; however, they stated
that funds were not necessary for a press conference.
Norm Raedle moved that in response to the City Council's
September 16, 1991 Resolution to develop and implement a
comprehensive citizen participation process, the Task Force
should hold a press conference on December 3rd as a first step in
public education provided that the Mayor be informed of this for
her approval, if possible. David Kraft provided a second for
the motion. The members present voted unanimously for the
motion.
Judith Aiello offered the resources of her office to revise
the press package and coordinate the distribution.
Ned Lauterbach asked members to suggest changes and
additions to the documents included in the press packet. Members
made several changes and additions which were noted by staff. It
was agreed by consensus that Ed Pabst would be the spokesperson
for the Task Force.
Charles Lippitz moved to approve the press release and
statement as amended. David Kraft provided a second. Members
approved the motion unanimously.
Ned Lauterbach agreed to call Mayor Barr to advise her of
the Task Force's actions this evening.
--5-
David Kraft requested that the city secure a line by line
rebuttal from Gregg Ottinger that might be available for the
press conference. Judith Aiello agreed to make such a request of
Mr. Ottinger. She also asked that such requests of the
consultants go through the City Manager's Office.
Jan schakowsky stated that a response is needed to every
point raised by Com Ed. Norm Raedle cautioned that the City
cannot compete with Com Ed's public relations machine. The City
should look to initiate a realistic informational campaign, not
merely respond. William Hartgering added that the City must
coordinate a measured and strategic response. He commented that
Alderman Heydemann was also planning a resolution on this issue
for the City Council. Charles Lippitz stated that the Task
Force's response should be conservative and thoughtful unlike Cam
Ed's letter of November 22nd.
Ed Pabst asked members to help with questions at the press
conference. Staff agreed to find a room for the press
conference.
Judith Aiello provided an update of the Northwest Municipal
Conference's actions. She stated that the Model Franchise would
be released on December 12th to Task Force members when it is
released to the City Council. The Conference is willing to make
presentations to communities regarding the content of the model
franchise. Ms. Aiello added that the City of Evanston is under
not obligation to accept or use the NWMC Model Franchise.
Norm Raedle suggested scheduling NWMC to make a presentation
in Evanston. If the City Council convenes a meeting on the
subject, then the Task Force membership should be there, he
stated. If not, he added, then the Task Force should invite NWMC
to Evanston and publicize the event.
Roseanne Dineen asked when the Task Force would provide
comments to the Council on the Model Franchise. Judith Aiello
responded that January appeared to be the logical time.
David Kraft moved that the Task Force enter Executive
session. All members present voted unanimously, by roll call
vote, to enter Executive Session at 10:10 P.M. The Task Force
reconvened into open Session at 10:20 P.M.
Norm Raedle presented information about electric franchise
negotiations in Albuquerque, New Mexico. William Hartgering
requested that this information be submitted to the Negotiating
Team.
There being no further business, the meeting was adjourned
at 10:35 P.M.
Dennis Marino
Economic Development Planner
DM/cw
APPROVED
MINUTES
EVANSTON ENERGY ALTERNATIVES TASK FORCE
Meeting of December 5, 1991
Members Present: Ann Dienner, Rosanne Dineen, William
Hartgering, David Kraft, Ned Lauterbach,
Charles Lippitz, Edmund Pabst, Norman
Raedle
Members Absent: Jan Schakowksy, Jim Suhr, Kenneth Whitney
Staff Present: Judith Aiello, Assistant City Manager,
Dennis Marino, Economic Development Planner
Presiding Official: Ned Lauterbach, Acting Chairman
Summary of Action:
The meeting was convened at 7:39 P.M. by Ned Lauterbach who
was serving as Acting Chairman in the absence of Jim Suhr. Mr.
Lauterbach stated that he was pleased with the content of the
recent press conference involving Mayor Barr and the Task Force.
He mentioned a resulting article in the Chicago Tribune and
Channel 9 coverage the same evening as the press conference. He
acknowledged that broader press coverage would have been
desirable.
David Kraft asked if Mayor Barr would again approach Mayor
Daley or Alderman Mary Ann Smith (Chair, Inter --governmental
Affairs Committee, Chicago City Council) to discuss the mutual
interests of Chicago, Evanston, and the Northwest Municipal
Conference. He added that Commonwealth Edison's refusal to agree
to Chicago's affirmative action requirement offered a renewed
opportunity to dialogue with Chicago.
Judith Aiello agreed to communicate Mr. Kraft's comments to
the Mayor. Ms. Aiello stated that Evanston, Chicago and the
Northwest Municipal Conference were engaged in discussions about
Illinois Commerce Commission issues.
Charles Lippitz asked what the City intends to do in
response to Com Ed's letter of November 22, 1991. He suggested
sending a letter to each resident would be appropriate. Judith
Aiello stated that the City could not afford such a mailing but
an article in Evanston HLahlivhts was a possibility. Mr. Lippitz
suggested that a letter in response to Com Ed's letter be
inserted into the Iicrhliahts publications. He contended that
this was preferable to a brief article. Ms. Aiello stated that
--2--
an appropriate response by the Task Force to the Com Ed letter
could be a component of the Task Force's Public Education and
Information effort.
Ed Pabst stated that he and Jan Schakowsky wanted some
communication to citizens included in Hichliahts. He suggested
an abbreviated press statement be inserted into the newsletter.
Ned Lauterbach stated that Eunice Collins of Cam Ed would
speak at the Evanston Chamber of Commerce luncheon on December
13, 1991. Judith Aiello indicated that the notice from the
Chamber indicated Ms. Collins would comment an the model
franchise. She added that such a discussion should involve a
panel of commentators expressing a wider range of viewpoints.
Ann Dienner expressed concern that Ms. Collins appeared to be
"jumping the gun" on franchise renewal discussions. Norm Raedle
hoped that the chamber would want, in fairness, to hear other
viewpoints in addition to Com Ed.
The next agenda item was a review of the draft Power Supply
RFP which had been distributed in the packet for the November 26,
1991 meeting.
Norm Raedle summarized the process to date for preparing and
reviewing the draft RFP which had been distributed in the packet
for the November 26, 1991 meeting. He added that he, Roseanne
Dineen and Dennis Marino had developed the document, in part, on `
the basis of a suggested outline from Greg ottinger. The
Committee then added several items to this outline and revised
other suggested inclusions to reflect a need for additional
information and a confirmation of some data that had been
included in the Duncan and Allen study. Mr. Raedle suggested
that members focus on Pages B and 9 of the Draft which included
the itemized tasks to be completed by a contractor.
Mr. Raedle emphasized that at this point in time, there is
not any funding to pay for the Proposed Power Study. Hopefully,
he added, potential contractors would understand this and not be
reluctant to submit proposals. Ned Lauterbach added that there is often no assurance that an RFP will necessarily lead to a
funded contract.
Dennis Marino summarized the thirteen tasks which the
consultant would be required to complete. These proposed tasks
were listed on Pages B and 9 of the Proposed Draft RFP. Members
"' th"eii' bffered comments on each proposed task.
--3-
Ed Pabst asked if the contractor needed to discuss all the
issues suggested again with major electric users. He expressed
concern that the cost of the study may be too high given tae
tasks proposed and the requirement that the potential contractor
reconfirm information and conclusions presented by Duncan and
Allen. .ir. Pabst also commented that the study should be as
simple and as uncomplicated as possible, providing only essential
information to insure a cost of less than $125,000.
Roseanne Dineen responded to Mr. Pabst's concerns by stating
that only essential information is being requested with the RFP.
Secondly, she added that confirmation of Edison's facilities and
the power supply requirements of Evanston were extremely
important because these items were the point of departure for the
remainder of the study and that they had been critiqued by
Commonwealth Edison. She also added that the RFP does not
restrict itself to only WEPCo and one or two other potential
power suppliers because such an approach would be too narrow and
imprudent given that power supply cost is the major cost factor
in operating a municipal electric utility. she expressed concern
that Duncan and Allen had narrowed the suggested power supply
provider to WEPCO too quickly and also failed to consider Com Ed
as a potential wholesale power supplier.
Norm Raedle concurred with Ms. Dineen's response, but
offered a suggestion to address Mr. Pabst's concerns. He
proposed requiring respondents to the RFP to break out separately
the cost of each major component of the proposed study in
addition to providing a total cost figure. Given this detailed
cost information, the Task Force and the City could do a tradeoff
analysis of which components to fund should the total cost
proposed be unacceptable.
William Hartgering stated that the negotiating team should
review the draft RFP before it is released and add tasks if
needed.
several members questioned how to present the description
of the existing system and facilities of Com Ed within Evanston
included in the Draft RFP, given that Com Ed had publicly
disagreed with Duncan and Allen's representation of the system.
David Kraft stated that he had discussed this issue with
Greg Ottinger and that Duncan and Allen had a convincing rebuttal -
to Com Ed's critique. By consensus, members agreed to allow the
description of the existing electric system to remain in the
Draft RFP, but for language to be crafted making it clear that
the description is from Duncan and Allen's findings. The issue
would be reviewed again once Duncan and Allen's written response
was presented.
--4-
Additional comments by members included several minor
wording changes and the inclusion of ascertaining demand -side
management plans and co -generation capacity from Evanston
electric users.
Next members discussed the tieing of the release of the RFP.
It is scheduled for consideration by A&PW for December 16, 1991.
According to Judith Aiello, if approved without major changes, it
could probably be released by the end of December. Responses
could then be received by the end of January or mid -February.
Ned Lauterbach suggested narrowing the respondents to three
candidates and conducting interviews during a Task Force meeting.
William Hartgering and tied Lauterbach each stated that given that
consultants had already completed a similar study for Chicago,
they may view an Evanston study as requiring less additional
work than someone working on such a study for the first time in
the region.
Norm Raedle moved that a revised draft of the Power Supply
RFP be transmitted to the Administration & Public Works Committee
for consideration on December 16, 1991. A second was provided by
David Kraft. The motion was approved unanimously.
Public Information and Education
Next the Task Force discussed a Public Information and
Education Strategy designed to educate the public about the
municipalization option, including the Duncan and Allen Report,
and issues involved in the potential renegotiation of the
electric franchise.
David Kraft began by stating that Cam Ed had been more
critical about the Beck study in Chicago than it has been to date
about the Duncan and Allen study. He also commented that
Richard Stillerman's letter to the editor in the Evanston Review
raised the most critical issues in responding to Com Ed's
behavior in writing the letter of November 22, 1991 to Evanston
electric users.
Ed Pabst and Charles Lippitz expressed an urgent need to
respond to Edison's letter. Mr. Lippitz added that Com Ed's
approach is to remove municipalization from consideration before
negotiations start. He contended that if this happens, the City
will not be able to negotiate effectively.
David Kraft summarized a two page outline for a strategy
which had been included in the November 26, 1991 meeting packet.
He focused upon a brochure and a question and answer flyer as the
two major documents for communicating with the public. He stated
that these should be prepared for prompt distribution. He
-5-
suggested that these should be included in Hichliahts, the
&anstorL—Revi.ew (as an insert), postings in public buildings,
targeted mailing and the newsletters of voluntary associations,
churches, community organizations and elected officials.
Mr. Kraft also expressed a need for the formation of a
Citizens Energy Advisory Committee which would address issues the
Task Force had not been able to investigate. He stated that such
a group might be eligible for philanthropic funding. He also
added that the Nuclear Energy information Service would play a
role in addressing outstanding issues if other entities do not.
Norm Raedle stated that while Mr. Kraft's outline was
comprehensive, he was concerned that the Task Force might spread
itself too thin and should instead focus upon a manageable set of
tasks that were essential and could be completed quickly. He
also made a distinction between the following aspects of a public
education and .information strategy: public education, public
relations and public participation.
Mr. Raedle next asked who was going to implement the
strategy. Roseanne Dineen stated that it should be the Task
Force's subcommittee on Public Education and Information which
she volunteered to join. Ed Pabst suggested other Task Force
members join this group. David Kraft added that the City itself
should have a role in this process. Ed Pabst agreed. Ed Pabst
also suggested that Jim Suhr be added to the subcommittee;
several other members concurred. Roseanne Dineen suggested one
person be assigned the authority and responsibility to assign
speakers in response to requests. Norm Raedle added that First
United Methodist Church had offered, in a letter to him, to host
a community forum on the electric franchise issue. Ned
Lauterbach suggested that Jim Suhr be asked to respond and assign
members to respond to such requests.
Mr. John O'Leary, a member of the audience, stated that
since the Task Force members had not taken a stand on
municipalization, therefore, he was not sure the Task Force had
anything to communicate to the public. Several members disagreed
with Mr. O'Leary's remarks including Ed Pabst who stated it was
unrealistic for someone to conclude on the basis of a S30,000
municipalization study that the City should municipalize or not
municipalize.
.'-Z
Members next discussed a timetable for the Public Education
and Information effort which was agreed by consensus to have the
following initial components:
1) Public Education
A. Preparation and distribution of a Brochure that
describes the franchise process and states its
significance to the citizens of Evanston, and
summarizes the conclusions of the Duncan and
Allen study and additional efforts to examine
the feasibility of the municipalization option.
The brochure would also explain the Task Force's
process to date and provide appropriate contacts
for more information.
B. Preparation and distribution of a Question and
Answer Flyer that would be distributed with the
brochure and made available at public facilities.
The Task Force would like the information that
will be included in the Brochure and Flyer to be
presented in the City's periodic informational
publications, including Hiahlichts.
2) Public Participation
A. Establishment of the Task Force Chairman as the
contact person for requests from organizations
for speakers.
B. Assignments to Task Force members by the Chairman
for public presentations.
3) Public Relations
A. Conducting meetings with newspaper editorial
boards, beginning with the Evanston Review.
to discuss the content and conclusions of
the Duncan and Allen Report as well as other
appropriate issues related to the electric
franchise. The Task Force believes that the
appropriate delegation for such meetings should
include the Mayor, the Task Force Chairman and
other appropriate representatives.
-7-
The proposed timetable was agreed to be the following:
1) Submission of the proposed Public Education and
Information strategy to the A&PW Committee for
consideration at its December 16, 1991 meeting.
2) The subcommittee will begin working immediately on
a draft brochure and flyer.
3) The Task Force will meet on Thursday, December 19,
1991 at 7:30 A.M. It is also planning to meet in
the evening of January 2, 1991 provided sufficient
members are available.
David Kraft expressed concern about the previous
cancellation of the November meeting and requested that the Task
force meet at least once a month as scheduled provided a quorum
is expected. Charles Lippitz added that if a meeting is to be
cancelled the meeting should be rescheduled for the following
week, not the next month.
Ed Pabst requested that a press release be issued by the
City and the Task Force as soon as December 17, 1991 transmitting
the response of Duncan and Allen to the critique of its study
included in the November 22, 1991 letter by Com Ed. Charles
-Lippitz requested that a copy of the press release be provided to
Task Force members before it is finalized.
David Kraft added that it is important for the editorial
review board meeting with the Evanston Review to occur before
January 2, 1992. Ed Pabst also suggested that the Subcommittee
prepare a guest editorial to be published in the Evanston Review.
Other Business
Ned Lauterbach announced that the Negotiating Team will
convene a Public Fearing on January 16, 1992 on the subject of
the electric franchise. The Task Force has been asked to make
the first presentation of this hearing, including appropriate
comments concerning the Duncan and Allen study.
Charles Lippitz requested that the Task Force's role in the
Public Hearing be placed on the agenda for the next meeting. He
also asked that the Negotiating Team be invited to meet with the
Task Force during the Task Force's January 2, 1992 meeting. Mr.
Lippitz added that the Task Force has a special relationship with =
the Negotiating Team and that the two entities should discuss -
appropriate issues in Executive Session. Norm Raedle concurred =�=
that the meeting should be in Executive session. __
William Hartgering requested information from other members
who are aware of recently negotiated electric franchise
agreements in other cities.
The meeting was adjourned at 10:20 P.M.
ry�\ %,
Dennis Marino
Economic Development Planner
DM/cw