EPUD board wants to double travel budget [The Register-Guard, Eugene, Ore.]

Oct. 15--Emerald People'sUtility District board members are proposing to nearly double the amount the public utility spends to send them to out-of-district conferences and meetings next year.

The five-member board -- which serves rural communities surrounding the Eugene-Springfield metropolitan area -- has budgeted $58,862 to cover trips to Portland, Seaside, Salem, Denver, Billings, Mont., and Washington, D.C., in 2014. This year, the board expects to spend $29,800 for out-of-town travel and meeting registrations.

The board is one of only a few elected governing bodies in the state with paid positions. Members receive a $134 stipend -- or $3,216 a year -- for each of the 24 regularly scheduled board meetings they attend; a $450 monthly health insurance stipend; and mileage reimbursements for driving to meetings at the utility's headquarters on Seavey Loop Road east of Eugene.

Members also receive a $134 daily stipend for each day they attend an in- or out-of-state conference. Board member Katherine Schacht, for example, requested to receive $6,968 in stipends for attending conferences next year, on top of the $3,216 she'll earn for attending EPUD meetings.

In sum, each board member has budgeted an average of $30,800 for themselves for next year -- $1,822 less than this year after members voted earlier this month to trim almost $21,000 from the board budget for 2014, which now totals $154,101.

The utility will hold a question-and-answer session on the budget tonight, and the board will approve a final 2014 budget in December. Most or all board members are expected to attend today's session.

Elected board positions at Eugene Water & Electric Board and Springfield Utility Board are volunteer. EWEB's five commissioners have thus far this year spent $9,000 combined on travel and training. The utility budgeted up to $23,000 for those expenses, spokesman Joe Harwood said.

Total travel expenses related to training for SUB members to date this year are $5,220, spokeswoman Meredith Clark said. The utility budgeted $60,777 for those activities.

EPUD's projected revenues for next year is about $1.1 million short of what's needed to cover its projected expenditures of $42.2 million. After laying off 13 percent of its staff last year, EPUD is "back on stable ground" and will fill the budget hole by spending cash reserves, General Manager Scott Coe said.

Coe, who was selected by the board to lead the utility in December, said he generally is supportive of the board's travels because it helps members stay informed on utility issues.

"Sometimes, if you're too thrifty, you start losing the ability to do your job," Coe said, referencing the learning curve that board members face in the utilities industry.

"I think the travel (cost) is up some, but I think it's reasonable given the changes in the industry," said Coe, a former Bonneville Power Administration executive.

EPUD belongs to several local and national agencies that hold monthly or annual conferences for utility board members and staff, including the Northwest Public Power conference held in Billings and the American Public Power Association's conference in Denver.

Coe said the board's move to cut its budget by $20,937 was fueled largely by public testimony from ratepayer Emma Higley, who pointed out to the board last month that some members budgeted more than $900 in airfare to fly to lobby Congress.

"I just don't think it's necessary," said Higley, who regularly attends board meetings. "With the economy the way it is and with people out of work, this is not necessary for them to increase their budget right now to go to fancy-pants hotels and conferences. It's absurd."

Board members have yet to specify exactly how they'll cut $20,937 from their budget, Coe said.

The board likely will need to be more choosy with airfare and lodging for the conferences it attends, Coe said.

Some board members may stay with family or friends during conferences or may choose to use frequent-flyer miles they have accumulated from traveling with a specific airline, he said.

"The board looks for ways to cut," Coe said. "They aren't being fat, dumb and happy with their Visa cards. They're pretty (money) conscious."

Board Vice President Kevin Parrish is one of two members who had voted "no" on the motion to reduce the board's budget.

Parrish, who was appointed to his seat earlier this year, said he isn't necessarily against trimming the board's budget, but said he thinks board members first need to have a more detailed discussion about how to make cuts.

Board members who make policy decisions for a utility with a $42.2 million budget need to be educated, Parrish said.

"It's important the directors stay informed," he said. "We shouldn't just be making a blanket cut for political cover."

The board's overall budget has decreased in the last five years. The board voted last year to do away with life insurance and comprehensive health insurance for themselves and their families.

Now, members receive their monthly stipends -- which cumulatively total $27,000 a year -- in part to help pay for health insurance.

The board also voted last year to stop having catered meals delivered to its meetings, saving the utility more than $2,000.

Parrish is asking the utility for $30,386 next year, but that number may change because of the planned budget reduction.

Board President Penny Jordan budgeted for $29,249; Schacht budgeted for $28,755; and Ron Davis budgeted for $17,609.

Patti Chappel -- who also voted "no" to reduce the budget -- requested $33,295 for next year.

In addition, Chappel is suing the utility for $4,714 in legal fees, according to a small claims case filed in Lane County Circuit Court last month.

The fees stem from a 2011 ethics complaint that alleged that Chappel failed to disclose a conflict of interest and used her elected position for financial gain when -- at Chappel's request -- the board tried to annex her Veneta home into the district's boundaries so she could vote and serve on the board.

The state Government Ethics Commission dismissed the complaint. But it found the utility had violated public meetings law and kept incomplete notes and recordings of board meetings, making the ethics investigation difficult to conduct, the commission noted.

Chappel did not return calls for comment, and EPUD officials declined to comment on the suit.

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