Board Members present: Dorothy Anderson, Susie Smith, Jeff Osanka, Mike Dyer, and Sandra Bishop.
Others present: Randy Berggren, Gale Banry, Manda Bednarczyk, Ken Beeson, Tom Buckhouse, Mel Damewood, Marty Douglass, Garry Kunkel, Tom Lindly, Roseanna McArthur, John Mitchell, Jim Origliosso, Laurie Power, Dick Varner, Debra Wright, John Yanov, and Krista Hince of the EWEB staff; Mark Rauch, member of the public; and Kim Kunkel, Minutes Recorder.
President Anderson called the meeting to order.
1998/99 WORK PLAN AND BUDGET
General Manager Randy Berggren stated that after meeting with Commissioners individually last week it was clear that staff's efforts to create new budget views that worked for the Board was unsuccessful. He said that based on information gained during those discussions, staff developed a view that is essentially functional (uses functional areas such as Divisions and work units), and associates with each Division those program areas for which they have management responsibility. Mr. Berggren explained that the two components of this budget view are
Referring to an October 31 memorandum included in the meeting agenda packet and a series of overhead displays, copies of which were distributed, Energy Resource Projects Manager Gale Banry said individual staff members would present the 1998/1999 Work Plan and Budget specific to their Divisions.
With regard to the General Manager's Division, Mr. Berggren reported that the Division Summary reflects an overall budget increase of approximately 1.3 percent from 1997 to 1998.
Commissioner Osanka expressed concern regarding the cost of minutes recording and catering services. Vice President Smith said it was determined that contracting minutes recording services was less costly than utilizing internal personnel and the catering service simply provides for the needs of the Board.
Referring to the Corporate Planning program of the General Manager's Division, Assistant to the General Manager/Performance Improvement Manager Roseanna McArthur briefly described the program and reviewed its 1998 Budget Summary. She explained that the majority of the program's costs are labor and the non-labor costs are largely attributable to travel expenses and corporate systems.
Vice President Smith inquired as to whether there is a way to monitor or measure the effectiveness of Corporate Planning program activities against the work of the utility as a whole. Noting that the work completed as the result of this program impacts EWEB's ongoing initiatives, Mr. Berggren said measurements are applied to the program.
Referring to the Human Resources program of the General Manager's Division, Ms. McArthur reviewed the 1998 Budget Summary, noting that the 1997 budget estimate is incorrect and will be revised. Fiscal Services Supervisor Dick Varner explained that a number of factors, such as rising health insurance costs, revising EWEB's compensation system, and upgrading the Human Resources Information System, contributed to the Human Resources program budget increase.
Commissioner Dyer commented that 11.5 full-time equivalent (FTE) positions in Human Resources seems excessive in comparison to the Human Resources Departments of other companies. Ms. McArthur responded that payroll is the only automated system in Human Resources. All other tasks are done manually. Ms. McArthur added that unlike EWEB, most Human Resources Departments do not include both payroll and safety.
Commissioner Dyer inquired as to why an 11 percent increase in healthcare costs is projected. Ms. McArthur responded that EWEB is currently negotiating its benefits contract and may purchase a cost cap this year which would offset possible rate increases and result in significant savings next year.
Commissioner Bishop inquired as to why an increase in corporate training costs is projected.
Ms. McArthur explained that EWEB lacked sufficient corporate training funds between 1996 and 1998 and the proposed budget merely reflects a reasonable funding level. She stressed the fact that EWEB considers corporate training an important factor in maintaining a competitive advantage. Vice President Smith said providing adequate funding for corporate training is important in expressing EWEB's value of bringing people up through the organization.
Commissioner Bishop expressed concern regarding the projected budget for the Human Resources Information System, expressing doubt that the projected cost is "one-time" money. Ms. McArthur explained that the budget reflects the costs envisioned for 1998 and additional costs will likely be incurred; however, because the Human Resources Information System will integrate with a larger system that is already in place, it will not bear the total system costs.
Referring to the Information Resource Management program of the General Manager's Division, Information Services Manager Tom Lindly briefly described the program's function and reviewed the 1998 Budget Summary, noting that the $50,000 difference between the 1997 and 1998 budget is attributable to outside projects. He said the Information Resource Management program budget has actually remained relatively flat.
Vice President Smith inquired as to whether staff has compared EWEB's Information Resource Management program to the information-related departments of other entities in order to test the reasonableness of its 40 FTE. Mr. Lindly responded that staff is in the process of creating a survey that will provide benchmark data from other organizations and provide a comparison of staffing levels, costs, and annual budgets.
Referring to the Public Affairs program of the General Manager's Division, Mr. Douglass briefly described the function of the program and reviewed the 1998 Budget Summary, highlighting the program's major non-labor costs.
With regard to organizational communications, Vice President Smith expressed her opinion that EWEB spends an excessive amount of money on employee communications that are fragmented throughout the organization. She said it was important that EWEB monitor the real value of such communications and suggested testing the value of existing communications before adding more. Mr. Berggren responded that EWEB's two primary internal communications are continually tested. He said the communications are used to facilitate employee outreach and labor relations. Vice President Smith said there are other "information bits" circulating within the organization and the cost of these communications seems excessive. She suggested EWEB consider how its internal communications might be more cost-effective.
Commissioner Dyer said he shares Vice President Smith's concerns regarding the cost of internal communications. He inquired as to how many types of internal communications EWEB has. Mr. Douglass responded that included in the organizational communications category of the budget are employee publications, Currents and Intercom publications, fliers, posters, communications consulting, intranet development, retirement banquets, and other events.
Commissioner Bishop said that as a new Board member, being informed as to the purpose and targeted audience of each publication would have been helpful. Noting that Currents and Intercom likely overlap in terms of material covered, Commissioner Bishop suggested staff consider combining the publications.
Referring to the Environmental Management program of the General Manager's Division, Environmental Manager Laurie Power described the program and reviewed the 1998 Budget Summary, noting that the budget remains relatively flat.
The meeting adjourned at 8:10 p.m.