Board Members present: Dorothy Anderson, Sandra Bishop, Mike Dyer,
Jeff Osanka, and Susie Smith.
Others present: Randy Berggren, Cathy Bloom, Tom Buckhouse, Bud
Edwards, Cathy Hamilton, Dave Koski, Garry Kunkel, John Mitchell,
Mark Oberle, Jim Origliosso, Scott Spettel, Dick Varner, Debra
Wright, and Krista Hince of the EWEB staff; Frank Nearing, KLCC
Radio; Mike McCarthy, Johnny Midland, Dean Rinerman, members of the
public; and Kim Kunkel, Minutes Recorder.
President Smith called the meeting to order and determined there was consensus to approve the agenda, as written.
MINUTES
The Commissioners reviewed the minutes of the February 3, 1998, Work Session and Regular Board Meeting.
Referring to paragraph 5 on page 2 of the work session minutes, Commissioner Anderson requested that the final sentence be amended to read "Commissioner Anderson suggested that EWEB investigate use of meters which can assess the condition of customers' appliances and warn of potential breakdowns."
Referring to the Work Session minutes, Vice President Osanka requested that the final page reflect his proposal that the first telecommunications pilot project be implemented in the Bethel/Danebo area.
Referring to the February 3 Work Session and Board Meeting minutes in general, Vice President Osanka requested that the document be amended to refer to him as "Vice President" rather than "Commissioner."
Vice President Osanka moved, seconded by Commissioner Dyer, to
approve the minutes of the February 3, 1998, Work Session and Regular
Board Meeting, as amended. The motion passed unanimously.
PUBLIC INPUT
Michael McCarthy, (address unknown), expressed opposition to EWEB's tree trimming practices which he witnessed and protested that day in the Whiteaker neighborhood. He stated that EWEB's method of removing large branch segments damages these heritage trees and does not allow for the growth of smaller branches. Noting that EWEB staff had justified that day's trimming as a necessity resulting from improper trimming that occurred three years ago, Mr. McCarthy inquired as to how EWEB could be sure it was now trimming the trees correctly.
President Smith noted that several years ago, EWEB staff, a City of Eugene Arborist, and Whiteaker area neighbors co-created guidelines for trimming the heritage trees in that vicinity. She requested that staff provide Mr. McCarthy with a copy of those guidelines.
Dean Rimerman, (address unknown), identified himself as a local forest activist and said he is concerned about EWEB's tree-trimming practices. He requested that EWEB re-examine its approach to pruning the trees on Adams Street, and consider allowing smaller branches to remain and grow upward as a canopy. Addressing a separate issue, Mr. Rimerman stated that citizens expect EWEB to be accountable by developing a water quality reporting mechanism. He said failing to do so may result in a loss of business for the utility.
Commissioner Bishop reported that she has received a number of phone calls from constituents on Adams Street who oppose what they view as "drastic pruning" rather than incremental pruning of heritage trees in their neighborhood.
President Smith acknowledged that the Whiteaker/Adams Street area warrants closer scrutiny in terms of EWEB's tree-trimming practices, regardless of the policies and procedures governing pruning practices in other areas. Noting that EWEB prunes trees in conformance with City of Eugene standards, Mr. Berggren said EWEB staff can confer with City staff regarding how to treat heritage trees.
Garry Kunkel, Electric Division Director, said EWEB shares the City's goals of maximizing tree health and minimizing the cuts made to trees. He said EWEB staff would meet with City representatives, the pruning contractor, and members of the public the next day to discuss this matter. Mr. Kunkel confirmed that pruning in the Whiteaker/Adams Street area was halted earlier that day.
Commissioner Bishop said it is important that the Board and public understand who is responsible for determining if and when the tree trimming will commence.
Noting the sensitivity and importance of this issue, the Board requested that staff provide a brief report. City of Eugene Arborist Johnny Medlin and EWEB staff members Garry Kunkel, Brad Edwards, and Dave Koski provided the report, as summarized below:
Mr. Kunkel explained that EWEB is responsible for the reliability and safety of its electric lines.
Mr. Medlin said all City street trees are the responsibility of the City of Eugene and explained that in recent years the City shifted from the practice of "rounding" trees, which resulted in a large wound area, to a practice called "directional pruning." He said the philosophy of directional pruning is that in 90 percent of the time, 90 percent of the necessary pruning can be completed with only three cuts. He said this method, which requires a "Y" cut, trains the tree to grow up and around the wires, thereby retaining the greatest amount of foliage possible while still clearing the lines.
Electric Operations Manager Dave Koski explained that because the directional pruning was not fully completed three years ago, cuts of a more drastic nature are now necessary.
Mr. Medlin said he thinks EWEB and the City should explain to area neighbors the method and intent of the pruning and assure them that EWEB and the City share their concern for the health of the trees.
Commissioner Bishop suggested inviting area residents to participate in the meetings between the City, EWEB, and the pruning contractor. She stressed the importance of achieving a balance between EWEB's legal obligation to keep the trees out of the lines and environmental issues. Mr. Koski said EWEB would work with area residents to establish agreeable pruning guidelines, as it did several years ago, and redirect trimming crews until such dialogue has taken place.
Mr. Edwards and Mr. Medlin agreed that the visual impact of the pruning will be less severe if the trimming takes place before the trees leaf out.
EASEMENT GRANTING ACROSS EWEB PROPERTY AT CURRIN SUBSTATION
Referring to a memorandum included in the meeting agenda packet, Real Property Specialist Mark Oberle requested Board approval of the easement for University Commons for a consideration of $1,780.
Vice President Osanka moved, seconded by Commissioner Dyer, to
approve the easement for University Commons for a consideration of
$1,780. The motion passed unanimously.
OURCA POST-2000 POWER PURCHASE
Noting that this item was discussed at length during the preceding Work Session, Energy Resource and Planning Manager Scott Spettel requested that the Board authorize staff to complete negotiations with the Bonneville Power Administration (BPA) for a purchase of up to a 25 megawatt block of power in BPA's pre-subscription process.
Vice President Osanka stated that 25 megawatts seems sensible as a "hedge" against possible future price increases; however, he said he does not support building EWEB's power portfolio with such purchases exclusively.
Vice President Osanka moved, seconded by Commissioner Dyer, to
authorize staff to engage in negotiations with and through the Oregon
Utilities Resources Cooperative Association (OURCA) the Bonneville
Power Administration to purchase up to 25 average megawatts of power
from BPA in its pre-subscription, post-2001, marketing process. The
motion passed unanimously.
STRATEGIC APPLICATIONS OF ACCUMULATED ASSETS
EWEB Treasurer Jim Origliosso introduced James Kenny, EWEB's Consulting Actuary.
Referring to an October 29 memorandum previously distributed to the Board, Mr. Origliosso reminded Commissioners that one of several stated options for applying EWEB's accumulated assets is the utility's pension plan. Mr. Origliosso said EWEB's pension plan includes the following obligations:
He said the Post Retirement Medical Plan would be the focus of this discussion.
Referring to a series of overhead displays, Mr. Kenney explained that EWEB's Post Retirement Medical Plan allows retirees to obtain medical coverage through EWEB until age 65 and through PERS thereafter. Noting that EWEB's Post Retirement Medical Plan currently consists of three layers (old plan, phase-in plan, and current plan), Mr. Kenney reviewed the liabilities of the current plan. He explained that the liability for retirees is much greater than for active employees and this liability is unfunded. Mr. Kenney said that as an actuary, he believes in pre-funding obligations.
Mr. Kenney stated that cost methods and associated expenses for funding the liability are as follows:
Noting that the opinion of the FASB is not applicable to public entities such as EWEB, Mr. Kenney said it does set minimum standards by which to determine the annual expense of post-retirement benefits.
Commissioner Dyer inquired as to whether the $1.4 million in annual actuarial pre-funding expense would remain flat from year to year. Mr. Kenney responded that to the extent the assumptions behind the $1.4 million estimate are met, the annual expense should remain level from year to year. He said it is difficult, however, to predict premium amounts after the existing contracts expire. He said changes in the premiums could have a major impact on EWEB's liabilities.
Mr. Kenney explained that the "pay-as-you-go" method underestimates true costs in that it ignores
ITEMS FROM BOARD MEMBERS
Commissioner Bishop encouraged staff to attend the ongoing meetings concerning the relocation of the Amazon Slough. She said the relocation will likely impact EWEB's substation that is located in that area. Mr. Berggren said he has proposed that Mr. Oberle represent EWEB's interests in the matter.
The meeting adjourned at 9:30 p.m.