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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