Board Members present: Susie Smith, Jeff Osanka Mike Dyer, Sandra Bishop, and Dorothy Anderson.
Others present: Manda Bednarcyk, Randy Berggren, Tom Buckhouse, Chuck Dalton, Marty Douglass, Tony Eberline, Dick Helgeson, Krista Hince, Garry Kunkel, Roseanna McArthur, Jim Origliosso, Dick Varner, members of the EWEB staff; and Kim Kunkel, Minutes Recorder.
President Smith called the meeting to order.
ACCUMULATED ASSETS
Referring to a memorandum included in the meeting agenda packet, EWEB Treasurer Jim Origliosso recalled that during the last staff/Board discussion regarding the strategic application of accumulated assets, staff made two recommendations. He said the Board accepted the recommendation to implement an employee medical trust and rejected a recommendation to provide equity financing for fiber optics from cash. In addition, Mr. Varner recalled that
Mr. Varner summarized that the following strategic application options, including a newly-added project related to the "Year-2000 Problem" (Y2k), remain for the Board's consideration:
In response to a request from the Board issued during the last meeting on accumulated assets, EWEB Customer Relations Manager Chuck Dalton presented additional detail regarding his proposed low-income assistance program. Referring to information distributed to the Board, Mr. Dalton said his proposed low-income assistance plan is based on the concept of "universal service."
Mr. Dalton explained that under his proposed universal service plan, a customer who approaches customer service and indicates an inability to pay their balance within EWEB's desired time frame would be forwarded to a newly established position dedicated to intake and referral services. Mr. Dalton said the intake and referral person would determine whether the customer meets low-income guidelines that allow them access to special services offered by EWEB and throughout the community. He said that customers meeting such guidelines would then be referred to an EWEB customer education program focusing on such issues as wise energy use and appliance efficiency.
Mr. Dalton said that based on a referral from the intake and referral person, the customer would then be directed to EWEB in-house programs or programs managed by EWEB partners throughout the community, such as the LIEP or REACH programs. Mr. Dalton said EWEB's role at that point would be to monitor the customer's progress toward meeting the goal of eliminating the balance of their EWEB bill by the end of the year.
Mr. Dalton stressed that the universal service plan, in addressing the problems behind a customer's inability to pay, is a wiser expenditure of EWEB funds than the current practice of repeatedly contacting and disconnecting the services of delinquent customers. He said the plan effectively separates the "can't-pays" from the "won't-pays." In addition, he said it is a means by which to achieve positive public relations with the community and increase customer loyalty.
President Smith inquired as to how EWEB, under the proposed plan, would address the "won't pays." Mr. Dalton responded that "won't pays" would be subject to EWEB's standard collection policy. He said customers participating in the program would be under the supervision of EWEB staff and making regular payments of an agreed upon amount.
Mr. Origliosso expressed support for the proposed plan. Noting that he does not think EWEB currently has an accountable relationship with its customers, Mr. Origliosso said EWEB will need an effective means by which to work with delinquent customers given the utility's new collection system which discontinues service immediately following the last disconnect notice if a customer fails to make payment arrangements. Noting that EWEB annual credit function costs are approximately $1 million, Mr. Origliosso said that from a cost standpoint, it is difficult to support a continuation of EWEB's current collection practices.
President Smith expressed interest in looking at EWEB's low-income rental weatherization program. She said that while EWEB is moving toward offering weatherization loans, landlords are more likely to weatherize if they receive and utilize grant funds. She said EWEB should do everything possible, including incurring costs, to weatherize low-income residences. She said that doing so is a good investment in the long-term. President Smith requested information regarding how EWEB can "do more" in terms of offering low-income weatherization grants.
With regard to the "percentage of income" aspect of the proposed plan, President Smith said she was interested in discussing rate structure issues.
Commissioner Dyer said the dollar amount needed to fund the proposed program does not concern him; however, the creation of a new department through which the program would be administered is a concern. Mr. Dalton responded that he does not think a new department will be needed. He said the case management aspect of the program will be conducted by existing agencies in the community or in-house by EWEB. He said additional personnel to conduct intake and referral (1 FTE), as well as on ongoing monitoring of customers (1 FTE), may be needed; however, EWEB may be able to utilize FTE's from the utility's existing collection program, thereby resulting in a no actual FTE increase.
Mr. Berggren stressed that Mr. Dalton's proposal presents opportunities to shift existing EWEB activities and utilize some amount of accumulated assets as the start-up base for any additional services that would be needed. He stressed that the proposal is conceptual. Mr. Berggren suggested that the Board focus its discussion on whether any amount of EWEB' s accumulated assets should be allocated and reserved immediately as start-up funding for the proposed low-income assistance program. He said that if the Board did express support for allocating funds toward this effort, staff would like direction to move forward with validating the assumptions contained in the proposed plan.
President Smith suggested that before discussing a dollar amount by which to fund a low-income assistance program, the Board might want to consider EWEB's unfunded commitments which total more than $9 million. She stated that the addition of Y2K to the matrix of options demands a Board discussion of funding priorities.
Vice President Osanka contended that the present consideration process was not "regular order." He said the Board should consider funding these options as part of the regular budget process. He suggested that the availability of accumulated assets was attracting proposals and projects.
President Smith requested that Board members rank their funding priorities.
A majority of Board members indicated, via a straw poll, their preference to discontinue consideration of the rate rebate option.
The Board identified as its three highest funding priorities, the following:
President Smith requested that staff return to the Board with program proposals and respective costs.
The meeting adjourned at 7:12 p.m.