February 18, 2009

9:00 a.m.

Harris Hall Main Floor

APPROVED 3/4/2009


Commissioner Pete Sorenson presided with Commissioners Bill Dwyer, Bill Fleenor, Rob Handy and Faye Stewart present.  County Administrator Jeff Spartz, Assistant County Counsel Stephen Vorhes and Recording Secretary Melissa Zimmer were also present.




There will be an Emergency Business item.




Jim Gillette, Eugene, apologized and stated that he never accused the Board of extortion.  He said he depended on the Board’s fairness to correct what he thought were mistakes.  He stated that he has shown considerable proof of the innocent charges against him and there has never been any proof shown against him.  He wanted an end to this.  He also apologized to legal staff.


Paula Medaglia, Leeburg, said she has been a Lane County employee since 1990 but she was present as Chief Steward and First Vice President of AFSCME Local 2831.  She distributed packets of letters written by employees and retirees (copy in file) who wanted the Board to know the negative impacts that will happen to them and their families if the prescription coverage changes to the standard plan.  She said the union knows there are more than 25 people who will be impacted by the change of prescription coverage.  She stated that the members who wrote the letters could not be present because Lane County management has denied time management requests for vacation to all Lane County departments. 


Lori Green, Eugene, said she has been employed by Lane County since October 1997.  She is currently President of AFSCME Local 2831.  She addressed the Board on behalf of their members who appreciate their jobs and provide a valuable service to the community each business day.  She gave a voice to AFSCME members who could not attend the meeting due to denied time management requests.  She wanted to let the Board know about the impacts the standard insurance plan has to AFSCME members both current and retired.  She indicated that the pharmacy out of pocket expense analysis provided by the Johnson Benefit Group states that under the standard insurance plan, a range of 130 to 225 member families will be affected due to the change in prescriptions.  She said the change affects more than the eight or nine individuals under the major medical portion of the standard insurance plan and it is a key difference for their members.  She said those impacted by the change are constituents and Lane County employees.  She requested the Board review the analysis provided by the Johnson Benefit Group and the information in the letters.  She asked the Board to reconsider the direction provided to the Lane County bargaining team.  She asked for a satisfactory resolution to their contract negotiations.


Alice Stoner, Eugene, said she is a retiree, working 27 years for Lane County.  She knew when she retired that she would have medical benefits and she heard that they could possibly lose them.  She said they set benefits into retirement.  She commented that as she has gotten older, prescriptions have gone up.


Judy Ferrell, Springfield, said she is Second Vice President of AFSCME Local 2831.  She called Pacific Source to see how much her prescription out-of-pocket would be if they switch to the standard health care plan.  She stated that she is the only person who works in her family and the out of pocket cost will be $3,400 per year.  She indicated that medicine is needed to sustain her husband’s life.  She commented that if they have to switch over to the standard plan, she won’t have a husband any more.  She said that this would impact their most vulnerable citizens, retirees and active members.  She asked the Board to reconsider to let them maintain their benefits.


Janet Beckman, Springfield, said she works for Springfield Public Schools as the homeless liaison and part of the committee for Springfield Shelter Rights Alliance.  She asked the Board to consider the use of the Amory as an extreme shelter for the homeless.  She said the site would make it where both cities would have access.  She said they could give safe care for those who need to be out of the weather in extreme weather conditions.


Zachary Vishinoff, Eugene, was concerned about the Marine Reserve’s proposal.  He thought the Board needed to talk to fishermen because past emergency funding had not been available.


Judy Harold, Springfield, said she is a member of Springfield Shelter Rights Alliance.  She commented that it is critical the community have a place where their most vulnerable citizens can find shelter in extreme weather.  She said they don’t have a place that could serve everyone and the warming center would not exclude anyone.  She stated that the needs are not being met currently and in this economy they have begun to be aware that there will be more homeless.  She hoped the Board would embrace using the Armory.


Jerry Smith, Eugene, reported that the city and county together did a survey of people they could find in the community and there are about 2,000 people per night in Lane County that are homeless.  He said when he received the information from the federal food stamp program for Oregon, he found out that in December 2008 there were 4,390 Lane County persons on their roles as homeless, 16,639 adults with zero income and 3,000 additional adults with incomes from $1 to $350 per month. He commented that there are more than what the current number states and he considered it to be a major emergency.  He thought it was caused by specific waiting periods for federal benefits.  He thought the Board should support the Armory, declare a federal emergency and get money from the state and FEMA.


John Antone, Springfield, spoke on behalf of the homeless.  He commented that there is an imbalance in society and there are few voices about social justice.  He said the County needs to help the down and out and they need to get a shelter for everyone.


James Trasport, Eugene, said that he has been a Lane County employee for one year.  He said he has become a better advocate for people.  He thought the Board should consider health benefits as a community resource, not something that individuals have as their own.  He said health benefits draws people to prospective employment and for retirees to be insured.  He thought lowering the bar at this time was wrong. He said it is time for leadership to realize the value of benefits. 


Chuck Areford, Eugene, stated that he has been an employee for 13 years at Mental Health.  He said he won’t be negatively impacted by changing insurance plans but he was concerned about his co-workers and retirees. He said they are being asked to sacrifice now that the economy is not good.  He commented that at Mental Health they have a difficult job.  He noted at Lane County their average wage is $15,000 less than similar jobs throughout the state.  He also supported the homeless shelter and thought it was a good idea.  He commented that the difference between a happy and disgruntled workforce cannot be measured in dollars. He asked the Board to close the gap and reach a fair contract.


Marion Malcolm, Eugene, supported the emergency homeless shelter.  She reported that last year in the Springfield School District 55 percent of the students were on free or reduced lunch.  She said they know there are a lot of families who are at the brink of disaster.  She stated that Oregon State Law specifies that an emergency means a human created or natural event, or circumstance that causes or threatens widespread loss of life, injury to person or property, human suffering or financial loss. She said it was clear to her that to be homeless in severe weather is an emergency as defined by Oregon law.  She hoped the Board would approve the use of the old Amory for shelter in extreme weather for homeless people.  She was also in support of AFSCME’s desire to retain their benefits.  She thought it was important in these hard times that the County doesn’t go for the leveling down option.


Robert Emmons, Fall Creek, stated that Landwatch Lane County (which he heads) supports a request by Goal 1 Coalition to initiate a Post Acknowledgment Plan Amendment to consider a change to the appeals process.  He said the Board is not being asked to take a position on the merits, but to offer an opportunity to the public to hear and consider the proposal.  He recalled that this issue has already been vetted by County Counsel and attorneys for land developers.  He hoped to have a hearing scheduled on this issue.


Judy Brown, Springfield, said she is the Mission Chair at Everett Methodist Church in Springfield.  She said in December they were one of three churches that opened their doors for two nights to house the homeless when the temperatures went down.  She said the people they were receiving through their doors had limited access to information, but they still had a big crowd.  She added that it was last minute and thrown together with volunteers and donated items for food.  She thought if they had a plan with a designated location and a set of criteria, it would not have to be a last minute thing.  She also thought it would be safer.  She encouraged the Board to adopt the site and the plan so they have a resource to protect those who are at otherwise at risk of losing their lives in extreme weather.


Michelle Wood, Eugene,  spoke in support of marine reserves. She said she has been teaching Marine Biology at the University of Oregon since 1990.  She commented that marine reserves have been studied around the world in a number of sites and shown to provide positive impacts on fish.  Her research found a continental shelf inside Heceta Bank to be a productive area and they are focusing attention on it.  She thought from a biodiversity marine resources standpoint, the proposal to designate the Heceta Head Cape Perpetua region as a site for further consideration as a marine reserve is a positive step to protecting resources.  She commented that it needs to proceed with due diligence and an opportunity for public comment by all of the stakeholders.  She said it also needs to be compared with fishermen and future benefits.


Rev. Natasha Bruebaker Garrison, Eugene, said she is an Episcopal Priest.  She came from Michigan last year where they have harsh weather.  She had already assumed there was a place to shelter people without homes.  She discovered that wasn’t the case.  She said the church opened their doors for overnight shelter.  She said they did it for four nights with minimal volunteers.  She recalled that they had one incident with someone who was difficult, but otherwise it went well.  She said since that event it has become a goal for her to be a part of making a permanent collaborative system of extreme weather shelters in the city a reality.  She said the possibility of using the Armory as a pilot site for the remaining months of this winter is an opportunity they must take.  She indicated that they have become a working network of volunteers, churches, local government, social service providers and community resources.  She said they have a vision and plan that is taking shape.  She thought the Armory was a workable place to offer the shelter that is needed.  She commented that the costs are minimal and there is conversation about raising funds to pay for the pilot project.  She asked the Board to give approval to the need for extra capacity in inclement weather.


Leah Patton, Florence, stated that she lives across from Harbor Vista R.V. Park.  She was uncomfortable as the park was not following rules.  She said last October there was no legal notice published and there are seven new caretakers at the park.  She noted on January 24, 2009 and January 28, 2009 a legal notice appeared stating there was an opening.  She didn’t know if the caretakers would still be there.  She also opposed day time fees at the park.






Dwyer read The Register Guard and said that Pacific had bought 20 percent left of McKenzie Willamette Hospital. He recalled that they converted 100 percent of community assets from a non-profit to a for-profit and the state allowed them to do that.  He added that the state set aside 20 percent to minimize the public outcry.  He stated they have now bought the other 20 percent and converted it into a Wall Street for-profit.  He said the County has forgiven $30 million over 50 years for the community hospital and now the hospital is completely converted to a for-profit for stockholders and the government allowed it to occur.  He said they have lost a community hospital.  He commented that McKenzie Willamette is a good hospital, but he liked it better when it was a community hospital.


Fleenor commented that the Country is facing one of the greatest financial crisis ever.  He said it will force a lot of people into poverty and it is the opposite direction they want to go.  He said millions of people have been laid off.  He stated they have a national crisis and they can’t avoid it.   He stated that they all have to work together for a common solution.  He added that the Board is struggling with huge decisions they have to make and it is not easy.  He said they are trying to live within the revenue they have and to provide the essential services citizens demand.  He asked the citizens to bear with the Board as they are doing the best they can.  He wanted to make sure that AFSCME is treated the best they can under the circumstances.  He said it is a community effort and they all have to sacrifice.


Handy commented that they have many vulnerable people in the community.


Stewart thought they came up with a good way to deal with homelessness for the short term.


Sorenson enjoyed the Board’s trip to Florence.  He commented that collective bargaining is important.




A. Approval of Minutes


B. Assessment and Taxation


1) ORDER 09-2-18-1/In the Matter of Approving a Grant Application to the Oregon Department of Revenue for ORMAP Funds in the Amount of $140,000 For FY 2009-10.


C. Children and Families


1) ORDER 09-2-18-2/In the Matter of Approving the Submittal of a Grant to the U.S. Departments of Justice, Office on Violence Against Women in the Amount of Up to $250,000 Over Two Years for Education, training, and Enhanced Services to End Violence Against and Abuse of Women with Disabilities; and Delegating Authority to the County Administrator to Sign Grant Documents.


D. Public Safety


1. ORDER 09-2-18-3/In the Matter of Delegating Authority to the County Administrator to Execute Intergovernmental Agreement between the Federal Bureau of Prisons and Lane County to increase the Per Diem Daily Rate.


E. Public Works


1. ORDER 09-2-18-4/In the Matter of Appointing Seven New Members to the Resource Recovery Advisory Committee.


2. ORDER 09-2-18-5/In the Matter of Accepting A Dedication Of Land To Be Used As A Public Road Easement For County Road No. 714 (Perkins Road) (18-05-06-1).


F. County Counsel


a. ORDER 09-2-18-6/In the Matter of Allowing the SAVE Committee to Meet on February 26, 2009, and Thereafter During the First Quarter of 2009, Outside of a Regularly Scheduled Board of County Commissioners' Meeting.


MOTION: to approve the Consent Calendar with item 4 D.1. pulled.


Dwyer MOVED, Fleenor SECONDED.


VOTE: 5-0


4. D.1


Judy Simpson, Sheriff’s Office, recalled that the Sheriff’s Office has had an IGA with the Bureau of Prisons since 1989.  She said following the FY 08/ 09 budget adoption, they took reduction in their corrections alternative programs.  She said they can’t make it with the money they are bringing in on the rate they have.  She worked on a calculation to get $115 per day.  She indicated that they guaranty a minimum of 20 beds for their prisons for a maximum up to 28.  She commented that they could make it a viable program.  She indicated that they requested a letter and she wrote a letter.  She added that they accepted the letter giving them $115 per day, but it is temporary. She indicated that there is a six month extension of the current IGA.  She noted that it ends the end of February, with the caveat that she prepares  rate increase backup information.  She added that the Bureau of Prisons will approve their rate of $116.66 per day.  She said they also gave a four percent cost of living increase annually


Dwyer asked if there was any down side.


Simpson responded that there isn’t a down side and they will be bringing in an additional $1 million of revenue per year.


MOTION: to approve ORDER 09-2-18-3


Dwyer MOVED, Stewart SECONDED.


Fleenor asked if the Sheriff’s Department had a full cost recovery.


Simpson said they can’t use it in the federal programs. 


Fleenor asked why they weren’t given sufficient time to have the questions answered.


Simpson responded that she just received notice they were going to approve their rate last Friday and she still doesn’t have the contract.  She said it has to be signed by the end of the month or they will lose the increase.


Fleenor was concerned that the $116.00 per day might be under what their cost is and they would be doing a disservice to the public safety system and the citizens by approving this.


Simpson indicated that it was using all of the costs of an A87 Plan.  She recalled that they sent a letter to the U.S. Marshal’s Office trying to increase the U.S. Marshal’s rate in 2002 and asked that Information Services be put into an internal service plan.  She said they have yet to be put in the plan. 


Fleenor asked where the subsidy would be coming from.


Sorenson said they are proposing to give the County an increase but it is just a portion of the increased costs.


Russ Burger, Sheriff,  said A87 is for IS charges and he said the federal government won’t accept the way the County works it.  He indicated it is something the IS Department will have to work out.  He said if the Board doesn’t approve this they would be giving up about $4,000 now and at the end of the fiscal year.  He indicated that if this contract expires and they don’t renew it at the higher rate, they drop to $61.00 per day,  a significant reduction from the $116.00 per day.


Sorenson asked if they could have a work program that involves compliance with the requirement.


Russ didn’t know as it was up to Information Services.  It was his recommendation for the Board to approve this.  He indicated that it gives them the ability for offenders to be in the community and work.  He added that the funds they get help to offset the cost of the program.


Sorenson recommended that Bolinger, Tony Black and the Sheriff report back on the A87 issue.


VOTE: 5-0.





a. Legislative Committee.  

1. Legislative Committee Update

2. United Front Update

3. Forest Sequestration Joint Memorial


ORDER 09-2-18-12/In the Matter of Amending Board Order No. 09-1-28-20 Approving Lane County United Front Priorities for Purposes of Federal Advocacy and Securing Appropriations


Dwyer didn’t want to mention that Alex Cuyler, Intergovernmental Relations Manager, made a mistake.  He wanted to say a mistake was made.  He wanted to say that the wrong information was given instead of who made the mistake.


MOTION: to approve ORDER 09-2-18-12 as amended.


Dwyer MOVED, Fleenor SECONDED.


VOTE: 5-0.


Cuyler indicated that he came up with draft operating principles (copy in file) to give the Board and staff additional information about how the legislative process should work in Lane County.  He directed staff to bring this back on the Consent Calendar.


MOTION: to bring the draft operating principles back to the Board on the Consent Calendar.


Fleenor MOVED, Stewart SECONDED.


VOTE: 5-0.


ORDER 09-2-18-13/In the Matter of Adopting Positions on Legislative Issues During the 75th Legislative Session


Cuyler explained that these were the legislative bills he had the Legislative Committee review within the last week and bring to the attention of the Board.  He stated that HB2561 was a bill heard this morning in House Revenue in a public hearing.  He said it was a bill that came at the request of Willamalane Parks and Recreation District and the Lane Transit District.  He indicated it dealt with refunding taxes assessed for a public to public agency leasing agreement.  He stated the Assessor’s recommendation is to monitor the bill.


Cuyler noted the other bill for review is SB440.  He said it was brought forth by the committee on finance and revenue.  He believed the bill came out of one of the recommendations of the Federal Forest Task Force.  He said it eliminates existing language with how transient room taxes are used.  . 


Sorenson requested Cuyler take the Transient Room Tax bill off of the board order.


MOTION: to approve ORDER 09-2-18-13.


Dwyer MOVED, Fleenor SECONDED.


VOTE: 5-0.


Joint Memorial


Cuyler distributed Attachment A (copy in file).  He recalled that they went to see how state law might be amended if cap and trade were implemented by the governor and if forestry offsets were qualified under the cap and trade program.  He added that if there were any revenue from federal forest lands that they would seek to share the money with Oregon counties.  He indicated that Legislative Counsel had concerns because there is no existing cap and trade program (state or federal) and there is no stream of revenue.  He said they suggested a joint memorial, a letter from the legislature to Congress urging them to do something.  He explained that some money comes from the BLM and some comes from the Forest Service.  He said Attachment B (copy in file) is what legislative counsel generated.  He said before the draft is discussed by the legislature in Salem, he asked if the Board wanted him to amend this before it becomes a bill and recognize the difference on how the money might apply.


Sorenson said they want the memorial to state that they want the counties to receive the money.  He said they don’t want the state to receive the money.  He said they should use the language from the current federal law.


Stewart met with Ms. Grilley and talked about the potential pilot project in Lane County.  He said there are 256,000 acres of BLM land in Lane County that could generate about 500,000 tons sequestered.  He said with Lane County’s 27 percent share, it is about $2.5 million if every acre was used for carbon sequestering.  He added if the WOPR gets approved, there is a potential that the revenue generated could lead to $11 million per year.


Sorenson wanted to reference in the joint memorial the federal law that distributes the Forest Service money, the federal law that distributes the O & C money and the state law that distributes the USDA  Forest Service money to the counties and schools.  He thought it should solve the question on how the money is to be distributed to the satisfaction of most of the people involved.  He wanted it to be for Lane County.


Cuyler said he was trying to examine how to best get this through the process in Salem. He was told that the more sponsors they could get on, the better.  He said they could do it at the request of Lane County.  He was trying to avoid a situation where the O & C counties would want to not have this pass.


Fleenor thought they should give this to Cuyler to modify, let Sorenson review this and if he is satisfied with the modifications to move forward.





a. DISCUSSION/Public Safety, Education, Prevention, Treatment and Rehabilitation.


Ron Chase, Executive Director, Sponsors; Peggy Whalen, Assistant Director, Womenspace and Larry Weinerman, Chrysalis Drug Treatment, discussed  their critical needs and the importance of continued funding.



Dwyer commented that there is no doubt they are in a crisis.  He thought before they had more dialogue that the Board needs to make a decision on how much they are going to spend and then have a dialogue around that.  He said they have to determine what they are going to commit as a resource issue to these types of problems.


Fleenor said for the size of Lane County they need to have 1,400 to 1,600 jail beds and the cost would be $60 million.  He said the amount is above the property taxes they are collecting.  He thought they could spend one sixth on the cost of a tent city.  He thought that was what they should be discussing.


Sorenson asked if they could have a major shift in the way they allocate dollars more toward treatment and less toward the jail between now and the next budget cycle.  He didn’t think they could respond positively.


Handy wanted to see cost per unit per service.


Stewart said he knows the system is broken.  He said it will take a commitment with public safety and treatment prevention to start building a new system from the ground up and what they have within their means.  He said in the short term they need to spend money to have the system they currently have work.  He indicated that they have over 300 beds empty in the jail and they could address some of the short term domestic violence and other crimes taking place immediately if they chose to do it.  He said they are going to have to put this before the citizens and they are going to have to believe in it in order to sell it to the citizens.


b. DISCUSSION/Environmental Protection Agency Grant Application: West Coast Estuaries Initiative for Coastal Watersheds.


MOTION: to send a letter for the grant application.


Dwyer MOVED, Stewart SECONDED.


VOTE: 5-0.




a. Announcements


Spartz reported that the Work Force Partnership Executive Committee met yesterday and went through provisions of federal legislation to stimulate the economy.  He said it in they know there will be increased allocations for things the Work Force Partnership is able to do.  He noted the most encouraging part was the fact that for youth employment the federal government will define it up to age 24.  He said that will provide additional employment throughout the summer for young people.


b. ORDER 09-2-18-7/In the Matter of Approving Projects Submitted under Title III of the Secure Rural Schools and Community Self-Determination Program, P.L. 110-343 for Fiscal Year 08-09.


Christine Moody, Budget Analyst, recalled that this came before the Board on January 27 with the Title III projects.  She stated that the Board asked for additional information.  She provided the answers and further cost detail on all the projects. (Copy in file).  She indicated that one project didn’t come forward with regard to Youth Services because they couldn’t determine how many youth would be responsive.  She stated there was enough funding to do all the projects for the four year period and end up with a balance of $750,000 if none of the projects are changed.  She added that included a 4.5 percent inflation rate.


MOTION: to approve ORDER 090-2-18-7.


Stewart MOVED, Fleenor SECONDED.


VOTE: 5-0.


c. ORDER 09-2-18-8/In the Matter of Awarding Contracts for Strategic Investment Projects Selected Through the 2008 Economic Development RFP Open Proposal Cycle and Authorizing the County Administrator to Sign Project Contracts.


Mike McKenzie-Bahr, Economic Development, explained that they are awarding contracts for the strategic investment projects through the 2008/2009 Economic Development RFP open cycle.  He added there is also a protest.  He said if they make awards for the County Administrator to sign project contracts, the committee has recommended the following awards:  Oakridge Upbeat for $24,110; Port of Siuslaw for $71,157; Quality Childcare Florence for $100,000; Western Pneumatics for $25,000; Glory Bee Foods for $73,422 and Next Step Recycling for $71,122. 


McKenzie-Bahr reported that the total amount of video lottery funding currently available is $1,334,000, comprised of $42,000 left in the original allocated budget for projects and $1,292,000 in reserves.  He said the total amount of video lottery funds recommended for award is $364,811.


McKenzie-Bahr noted the County received (within a timely manner) a protest filed from Jose Ortal of McKenzie River Insights (Copy in file).  McKenzie-Bahr said in Ortal’s protest, he is requesting that the funding and recommendations be cancelled as specified under ORS 137-047-0660(3).  He protested on the grounds that the evaluation committee unfairly applied the evaluation criteria,  Ortal said that the criteria used to evaluate the  proposal did not pertain to the service or products requested and that a member of the evaluation committee demonstrated bias toward a proposal or a proposer.  He explained with the protest procedure staff reviews and gets back to the review committee and prepares a report, making findings on the recommendation.  He added that anyone who received awards could also make comments.  He indicated that they received comments from the Port of Siuslaw.  He believed there was no violation of video lottery policy and the EDSC score and ranking process met all procedures under the rules and guidelines.


Dwyer thought he was the cause of the protest.  He said he made a comment that was taken out of context.  He said they invited the fishermen to make an application.  He spoke to the Board and more than three read the story that it was important to have an ice machine and the Port is solvent and the fishermen are able to maintain and keep their catch.  He said the project had already been scored before he made the comments.  He stated that his comments had nothing to do with the scoring.


Nan Osbon, Florence, thanked the Board for quality child care in Florence.


MOTION: to approve ORDER 09-2-18-8.


Fleenor MOVED, Stewart SECONDED.


VOTE: 5-0.




a. Announcements






a. Announcements


Stewart Bolinger, Internal Auditor, worked with McKenzie-Bahr to answer administrative review of a prior grant to the County.  He said the issues were well answered and the working relationship was stronger.  He expected to finish the Justice Court report by the end of the week.  He said he did research on amnesty programs for the Justice Courts.  He said that Commissioner Stewart asked him for a status report and he would have it in the morning.


Stewart said they are having difficulty collecting fines the Sheriff’s Office is writing.  He added that because they can’t collect fines, the Sheriff is going to have to lay off people.  He said it was imperative that they find a way to improve their fee collection as some of the money was going to help pay for the Human Services Commission.  He said they need to find a way to improve collections if they want to rely on the money to provide services.




a. ORAL REPORT BACK/Discussion Regarding the Results of a 12-month B-20 Biodiesel Evaluation.


Phil Guyette, Public Works, recalled in November 2007 he presented an overview of the biodiesel test program that Public Works conducted.  He said as directed by the Board, they expanded the use of biodiesel to improve all diesel powered County owned equipment and they began testing B-20,  20 percent biodiesel, 80 percent petroleum.


Guyette distributed information (copy in file) on the projected costs during the test and the information on what it would cost to expand to B- 20.  He said they had 29 diesel powered equipment used for the test, nine pick ups and 20 diesel construction equipment, all operating out of Delta.  He said they compared the fuel economy, the fuel system maintenance cost and the equipment down time resulting from the fuel system failures.  He said they compared 12 months on B-20 compared with the prior 12 months with petroleum based diesel.  He reported that during the 12 month period, the nine pickups were driven 79,000 miles and the equipment fleet was operated for about 14,000 hours.  He said they used 42,000 gallons of B-20 at an average cost of $3.46 per gallon.  He added it was about 29 cents a gallon higher than petroleum based diesel. 


With regard to the B-20 test results, Guyette reported that the fuel economy in the pickup trucks decreased about four percent and construction equipment fuel economy decreased about two percent.  He said they had equipment down time in temperatures below 32 degrees.  He indicated that is the temperature where biodiesel begins to break down.  He said they replaced two fuel tanks in the Ford pickups resulting from biodiesel dissolving an interior liner.  He said based on yesterday’s fuel quote at $1.41 for petroleum based diesel and $1.84 for B-20, he expected the additional costs for B-20 to be increased by about $150,000. He added that based on the maximum price differential paid over the past 12 months, there is a 63 cent maximum price differential between petroleum based diesel and B-20.  He said that B-20 could add as much as $265,000 annually. 


Guyette indicated that EWEB and LTD are not using biodiesel.  He thought they would see large fleets moving back from biodiesel to B-5 or less.  He asked if his department should discontinue biodiesel.


Sorenson asked Guyette to e-mail him with his recommendations.


There being no further business, Commissioner Sorenson recessed the meeting at 12:00 p.m.



Melissa Zimmer

Recording Secretary