Board Members present: Mike Dyer, Sandra Bishop, Dorothy Anderson, and Peter Bartel. President Susie Smith was absent and excused.
Others present: Randy Berggren, Terry Bequette, Tom Buckhouse, Jon Cunningham, Marty Douglass, Dick Helgeson, Garry Kunkel, Roseanna McArthur, Janet McLennan, Jean Meyers, Kris Middlewood, Mat Northway, Jim Origliosso, Dick Varner, Debra Wright, John Yanov, and Krista Hince of the EWEB staff; and Daniel Lindstrom, Minutes Recorder.
Vice President Dyer called the Work Session of the Eugene Water & Electric Board (EWEB) to order at 5:40 p.m.
General Manager Randy Berggren stated that the purpose of the Work Session was to begin Board consideration of the details of the 2000 Budget and Work Plans. He said the Budget and Work Plans were similar to what the Board had previously discussed and that presentations would concentrate on changes made and how the affects of financial strategies. He explained that consideration would be given to the three service divisions during the Work Session; that the Electric, Water, and Steam divisions would be considered on November 16; that an extra Work Session would likely be scheduled; and that approval of the budget was scheduled for December 7.
BUDGET ASSUMPTIONS
Fiscal Services Manager Dick Varner reviewed assumptions made in preparation of the 2000 Budget, as follows:
Mr. Varner reviewed assumptions made in the 2000 Electric Operating and Management (O&M) Budget, as follows:
Mr. Varner reviewed assumptions made in the 2000 Electric Capital Budget, as follows:
Commissioner Bartel noted that debt service costs would reduce the amount of funds available for conservation loans. Mr. Varner agreed, but suggested that the program decision was off-set by additional revenue available from carryover funds.
Mr. Varner reviewed assumptions made in the 2000 Water O&M Budget, as follows:
Mr. Varner reviewed assumptions made in the 2000 Water Capital Budget, as follows:
Mr. Varner reviewed assumptions made in the 2000 Steam Budget, as follows:
Commissioner Bishop asked if a Billing Charge for Water Districts strategy previously discussed was included in budget assumptions. Mr. Varner replied that the Billing Charge and Elevation Charge proposals were not included in the budget because of the limited rate analysis capacity of Fiscal Services. He said that some information to be developed in analysis for contract customer rates would be useful in further development of the proposals, but that they would not be included in the 2000 Budget.
Mr. Varner determined there were no further questions regarding budget assumptions.
FINANCIAL SERVICES DIVISION
Treasurer Jim Origliosso distributed copies of a series of charts which he used to review the 1999 and 2000 budgets of the Financial Services Division - comparing O&M Major Resources, O&M Major Functions, and Capital Major Functions.
Mr. Origliosso explained that the Financial Services Division budget included expenditures for debt service, taxes, and activities related to customer billing, accounting, and collecting, as well as insurance, legal administration, and general EWEB accounting support. He referred to a document entitled "2000 Budget Summary - Financial Services" distributed at the beginning of the meeting and reviewed information it contained related to budgets of program areas of the division - Financial Planning and Administration, Customer Accounting and Collection, Financial Recording and Reporting, and Risk Management.
Commissioner Bartel asked if legal costs were normally paid from EWEB rate revenue. Mr. Origliosso replied that such costs were normally allocated in that way, unless they were related to a bond-funded project.
Mr. Origliosso determined there were no further questions regarding the budget of the Financial Services Division
CORPORATE SERVICES DIVISION
Corporate Services Division Director Roseanna McArthur explained that program areas included in her division were Environmental Management, Information Resource management, Corporate Services Administration, Public Affairs, and Human Resources.
Ms. McArthur referred to a document entitled "2000 Budget Summary - Corporate Services Division" distributed at a previous meeting and reviewed information it contained related to budgets of program areas of the division.
Vice President Dyer asked why the cost of employee benefits were paid from the Corporate Services Division Budget and not charged to the separate divisions. Ms. McArthur replied that although labor costs were allocated to divisions, benefits were calculated on a utility-wide basis and managed through the Human Resources program area.
Vice President Dyer asked what advantage the use of SQL Server computer technology had over the use of mainframe technology. Ms. McArthur replied that SQL Servers gave individual users the ability to access and manipulate data.
Ms. McArthur pointed out that the cost of a proposed EWEB Land Trust contribution was not included in the budget of the Environmental Management program area because it was covered in the budgets of the Electric and Water Divisions.
Commissioner Anderson asked if resources for the Universal Service Program of assistance to low-income customers were included in the budget of the Public Affairs program. Mr. Berggren replied that no such resources were included, because previous Board discussions of the program had assumed that Accumulated Resources would be used for its funding.
Vice President Dyer asked how the proposed reduction in the budget of the Public Affairs program area would be accomplished. Public Affairs Manager Marty Douglass replied that the cuts had been done "incrementally" by eliminating participation in area home shows, sponsorship of an EWEB Open House, and transferring functions.
Commissioner Bartel said that he was concerned that EWEB would not participate in the Eugene Celebration and other public events. Ms. McArthur replied that increases in the budget for such activities might be possible from Operating Reserves. Mr. Berggren added that the Public Affairs program area would compete for such increased resources with other corporate functions.
Ms. McArthur determined there were no further questions regarding the budget of the Corporate Services Division.
FACILITIES SERVICES DIVISION
Facilities Services Division Director Tom Buckhouse referred to a document entitled "2000 Budget Summary - Facilities Services Division" distributed at a previous meeting and reviewed information it contained related to budgets of program areas of the division - Materials Management, Building and Land Management, Facilities Services Management, Fleet Management, Facilities Records Management.
Mr. Buckhouse explained that major changes in the budgets were related to completion of the Purchasing, Accounts Payable and Inventory (PAPI) computer system conversion, the shift of services to the Risk Management program area, and the elimination of three positions.
Commissioner Bishop said she was not convinced of the wisdom of eliminating security personnel for the graveyard shift at the Headquarters Building. She asked that a record be kept of incidents occurring during that shift and reported to the Board. She said she wanted to assess the effects of the change on EWEB's neighbors.
Mr. Buckhouse determined there were no further questions regarding the budget of the Facilities Services Division.
The Work Session adjourned at 7:35 p.m.
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Assistant Secretary President