Board Members present: Dorothy Anderson, Susie Smith, Jeff Osanka, Mike Dyer and Sandra Bishop.
Others present: Randy Berggren, Tom Buckhouse, Garilyn Crowley, Marty Douglass, Garry Kunkel, Bobbi Miller, Jim Origliosso, Dick Varner, Debra Wright, and Krista Hince of the EWEB staff; Kim Kunkel, Minutes Recorder.
President Anderson called the meeting to order.
1998/99 WORK PLAN AND BUDGET
A. Facilities Services
Referring to the 1998 Budget Summary distributed to the Board, Tom Buckhouse, Director of Facilities Services, described the function and reviewed the budget of the Facilities Service Division. Noting that the major changes in next year's budget are personnel- and capital project-related, Mr. Buckhouse presented detailed budget information related to the following main program responsibilities of the Division:
President Anderson inquired as to where in the budget the Master Plan Update is reflected. Mr. Buckhouse responded that the $20,000 allocated to update the Master Plan is considered a headquarters site facilities addition under the aforementioned Building and Land Management category. He said the Master Plan Update project manager has been selected and staff will present to the Board the proposed scope of the project.
B. Financial Services
Referring to the 1998 Budget Summary distributed to the Board, Jim Origliosso, Director of Financial Services, described the function and reviewed the budget of the Financial Services Division. He said the activities of the Financial Services Division are performed under the following program areas:
Vice President Smith expressed concern regarding the ongoing problem of calling EWEB's main telephone number and receiving either no answer or a considerably delayed answer. Mr. Berggren said staff could look into the issue and report back to the Board.
Referring to EWEB's automated payment system, Commissioner Osanka suggested advertizing the service via a bill stuffer.
C. Steam Division
Referring to the 1998 Budget Summary distributed to the Board, Dick Helgeson, Steam Division Manager, described the function and reviewed the budget of the Steam Division. Mr. Helgeson explained that Steam Division program areas include:
He noted that when comparing 1996, 1997, and 1998 budgets, changes in the bottom-line are largely attributable to shifts in the Steam Division's customer base. Mr. Helgeson said that because there have been no significant changes in the operating environment, EWEB's Steam Division anticipates comparable fuel costs in its upcoming contract negotiations.
Commissioner Bishop expressed concern regarding the rate increase assumption included in the 1998 Budget, stressing that because the Board has made no decision to implement a rate increase, the public may assume that the Board has no power. Comissioner Bishop said the Board should make a decision regarding whether to implement a rate increase and balance the budget based on its decision. Mr. Berggren responded that if staff did not assume a rate increase, it would have presented to the Board a deficit budget. He said the Board approves the intention to raise rates when it approves the budget. Commissioner Bishop said it would be "cleaner" to have a public process first.
Commissioner Dyer disagreed with Commissioner Bishop's suggestion, noting that he does not want to raise rates until he is confident in the proposed budget. President Anderson stated that as a citizen she would dislike the notion of a budget being passed without full knowledge of the implications of a rate change. Mr. Helgeson noted that although a rate increase assumption is included in the 1998 Budget, circumstances may change between now and the April, 1998, rates adoption, thereby making a rate increase unnecessary.
Commissioner Osanka suggested that as part of the budget process EWEB present to the public those items EWEB would be forced to cut in order to avoid a rate increase.
The meeting adjourned at 1:26 p.m.