HomeMy WebLinkAbout2000-05-15 Budget Committee Minutes
Budget Subcommittee Minutes
Committee members present: David Williams, Jim Moore, Regina Stepahin, Beverly Kenefick, Marty Levine,
Carole Wheeldon, Steve Hauck, David Fine.
Cate Hartzell and Susan Reid arrived at 3:45 p.m.
Committee Members Absent: Howard Braham, Cameron Hanson, Don Laws, Cathy Shaw
Staff present: Mike Freeman, Paul Nolte, Sharon Laws, Patrick Caldwell, Dick Wanderscheid, Greg Scoles,
Barbara Christensen, Fran Berteau.
Media Present: Vicki Aldous of the Ashland Daily Tidings.
Regina Stepahin, Chair of the Budget Committee, called the meeting to order at 3:34 p.m.
City Attorney Paul Nolte presented. He explained that support staff has recently been added to assist in liability
claims/risk management. One of the strategic plan goals has been to update the municipal code and the
charter. He explained he would like to implement a process whereby prosecutions in Municipal Court are
handled by an independent attorney outside the office as well as debt on delinquent food and beverage taxes.
Nolte pointed out the increase on page 35 of the budget by $20,000, this is for professional services for
someone to go through the Municipal Code, and if the budget is approved, he intends to use the Legal of
Oregon Cities to do that. The other increase is to begin implementation of utilizing outside attorneys for
prosecution in Municipal Court and collection on Food and Beverage taxes.
There was no discussion.
City Administrator Mike Freeman presented. He explained there are no significant changes in this budget,
although it shows a net increase of $2,000. There is a fairly significant decrease in contracted services. The
city's pay/compensation plan is being updated this year that is a one-time project. In terms of the Mayor and
Council's budget, the only significant change is in purchased services and that is more advertising of public
meetings in general. Council has put together a training schedule for themselves for the year which is about
$3,000 more than prior years.
Levine questioned how advertising was handled in the past and Freeman explained that that particular line item
is increasing due to more projects.
Freeman explained he does not anticipate staffing changes over the next five years for Administration or Legal.
Stepahin asked if there were any other questions regarding Administration.
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Dick Wanderscheid presented. He pointed out that staff is being reduced with an energy analyst and part-time
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building inspector going from 4/10 to 2/10, with one day per week working for Conservation, and four days a
week working for the building division. The department has been covering conservation since 1982 and has
spent almost $6.5 million, the bulk of which has come from the federal government in the form of grants from the
Bonneville Power Administration. The total savings on all these programs are over 18 million kilowatt hours and
based on the average residential unit, that is enough electricity to power about 1,600 residential units per year.
Wanderscheid explained the following programs: Solar program $50,000, Super Good Cents $30,000, Ducts
Sealing Program $3,000, Horizontal Axis Washing Machine Program $2,000, Heat Pump Loan Proram $30,000,
Commercial Program $25,000, Pilot Green Business Program $2,000, Dishwasher Program $2,000.
Williams questioned the savings concept if the City is spending over $6 million to save $541,000 of electrical
costs to Ashland. Wanderscheid replied that Bonneville is mandated under Federal law to buy conservation
before they buy new resources and that is why they have funded the bulk of the programs. It is only the last
three years where the City has rate-based energy conservation in Ashland paid for locally, and all of the
programs require some investment by the customer, in the way of zero-interest loan programs/rebate programs.
Williams questioned whether the programs are funded by electric rates, and Wanderscheid confirmed, about 2%
of a resident's electric bill goes toward funding of conservation programs. Williams questioned what would
happen if the administrative costs of the program were done away with and encouraged conservation by raising
tail block rates on electricity, which would give more of an incentive. Wanderscheid explained that tail block
rates are in many cases not very fair because renters who live in unweatherized houses are the ones that end
up in the tail blocks and the ones who have enough money to insulate their houses are typically more well off,
could switch to gas heat and would not have to incur those costs. He explained that virtually every utility in the
northwest is doing this and in the new rate case there will be a mandate that the City covers conservation (the
Conservation Discount). Bonneville will reduce our bill by $80,000 a year with the new rate case and at the end
of five years, if we haven't demonstrated that the $80,000 has not been spent on extra conservation that was not
done before, it will have to be returned to BPA.
Fine asked if other utilities have electric conservation programs run through a separate city department with its
own director rather than through the electric utility. Wanderscheid replied that we are the only utility that runs
through a separate department. He explained that it used to be a division of community development but now is
with administrative services.
Kenefick inquired how much a developer would save on an average new house with energy-saving systems.
Wanderscheid explained that typically with Super Good Cents, the City would pay about $1,000 for those
houses to have extra insulation, more efficient heating equipment, etc., and the homeowner will save about
$5,000 to $10,000 by savings built into the homes.
Wanderscheid went over the significant budget changes from last year which show an increase on the electric
conservation programs because of the Solar Pioneer Program. $50,000 was budgeted last year for the Solar
Pioneer Program for this year's budget, although the $50,000 was not spent this year due to the program not
being installed, and it will be spent in next year's budget. The Solar Pioneer program includes three 5KW solar
electric systems, one at SOU library, one at the Post Office, one at OSF, and a 15KW system at the Police
Station. When the budget was put together that was the number thought to be the cost but it will come in less
than this, around $315,000 total. Of this amount, $50,000 is from the City, $100,000 from the Bonneville Power
Administration, $62,500 from the Bonneville Environmental Foundation as a grant, and $100,000 from Avista,
the Natural Gas Company in Southern Oregon, and then each of the partner institutions (SOU library, Post
Office and OSF) will pay $15,000 each. He explained that Oregon has a system where the utilities that incur a
tax liability can purchase tax credits - Avista has tax liability and they are interested in purchasing the tax credit
for the City, so what we have to do to make us a non-taxable entity eligible for a tax credit is to borrow this
money from the State of Oregon under a small scale energy loan, which will make it eligible for the tax credit.
One of the hooks to get the paybacks down and to encourage our institutional partners to host the systems and
pay for half the cost is by agreeing to buy the green energy from the solar systems at an inflated rate of 25 cents
per kilowatt hour, and money will come from voluntary contributions by Ashland citizens. This is called the solar
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pioneer program and a bill stuffer has been sent out asking people to voluntarily agree to do this. The response
is favorable with over 240 people signed up which will generate almost $13,000 a year to buy green kilowatt
hours.
Hartzell questioned the $100,000 under contractual services and asked if it included the $22,000.
Wanderscheid explained that it is for other purchased services and Hartzell inquired why they are separated.
Wanderscheid explained that the $105,000 is contracted for services with the Communication Group. The
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events at the Hillah Temple, advance direct mail, etc. This amount
other $22,000 is for costs such as July 4
reflects an increase.
Levine asked Caldwell if he showed the $22,000 coming in from AFN and then expended in payment of the
advertising bills, and if AFN shows the expense going out to the Administrative Services Dept.
Caldwell clarified that the $22,000 is directly shown in AFN's fund structure, and is used for advertising, printing,
hats, shirts, mugs, etc. This is shown on page 41 as an expenditure, and is included in the materials and
services number in the telecommunications fund ($1.7 million in telecommunications). He further explained that
part of Administrative Services' budget ($167,000) is housed in telecommunications. Wanderscheid explained
that it is part of AFN's budget but it is administered by Administrative Services.
Fine asked Freeman about the 4.7 FTE people of which 2.2 FTE are conservation personnel who deal with
Water and Electric Conservation. Freeman clarified this is correct. Fine said if these people were factored out
you would be left with a Director, a Public Relations Specialist and a half-time secretary. Wanderscheid
explained that the half-time secretary does conservation work. Fine asked why the extra $10-$20,000 premium
for a Department Head position rather than a division head position. He asked of any other city our size which
would have a department like this to incur the extra expense without any financial benefit, and asked why this is
a separate department paying the extra premium.
Freeman clarified that this is a separate department because it deals with a lot of unique issues, and for that
reason is warranted. Fine questioned whether Wanderscheid and Seltzer's positions would be carried out as
effectively if they were members of Administration's Department with each drawing appropriate salary and
benefits, rather than as a Department essentially of two people. Freeman said this is not a department of two
people, and there are a whole series of different responsibilities that also come under this department
Wheeldon feels that this method is using a person very efficiently. Fine questioned the difference in salary with
a division head and a department head, which appears to be $10,000 to $20,000, excluding the cost of benefits.
Reid explained that our conservation program is so effective that Wanderscheid and his staff are the ones other
municipalities go to for advice.
Hartzell questioned how much of the telecommunication and marketing fund is contracted out and how much
Seltzer does in house. Wanderscheid confirmed that her salary is allocated half to AFN and half to
Administrative Services, and she coordinates City Source, various documents such as Budget in Brief, and the
Water Quality Report. Hartzell also questioned whether the marketing for AFN will go back to people working in
AFN, and if that happened, would Seltzer still have a role in the marketing of AFN. Wanderscheid confirmed
that the way things are budgeted this year half the time would be spent marketing AFN, but if things evolve over
time and less or no time is spent on AFN, then her salary would have to come out of Administrative Services or
be charged somewhere else. This year she will spend half of her time on AFN, but plans are to migrate much of
the marketing over there eventually and that will be reflected in the makeup of her salary, and her
responsibilities would go to other departments.
Hartzell questioned the $1 million for materials and services on page 39 and what the it is for. Wanderscheid
explained that $679,000 is electric conservation, and $390,000 is the one time loan for the solar program.
Hartzell said that the budget committee cannot mothball the AFN or the Solar Program and if there is a need to
do that the place to do it is when council brings up the issues and asks for public debate at different parts of the
year.
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Williams said likes to look at economic and efficient government and wonders if we will accomplish anything with
this kind of a program (solar) for Ashland. Council members present confirmed that this was a program signed
off by council.
Wheeldon asked Williams to clarify what he meant by meaningful and he replied that in a narrow context this
means what does this do for the citizens of Ashland. He feels that what Ashland is doing means nothing and it
is more important that Federal agencies, like the Department of Energy, address things like this by their attempt
to increase purchases of green power.
Hartzell questioned the funding of the City Source because of the way it is structured this year. She asked if it is
funded completely from the Central Services Fund. Wanderscheid replied that it is in Administrative Services
and that last year it was $40,000 but this year is budgeted at $42,000. The cost is about 39 cents per issue
which includes postage. He confirmed the contracted services line item as Community Attitude Survey $13,000,
Employee Survey $1,000, Standards Manual $3,500, and the Customer Service Program is $4,000 which adds
up to $21,500.
Hartzell clarified that mostly her No vote was reflective of the fact that she had more questions which had to do
with salary and wages and said she would take responsibility for getting answers to those questions and change
her vote to a Yes. She asked if the 3% level of increase was because of the union and asked if Freeman could
answer that and would we see that level of increase every year with salaries and wages. Freeman replied that
the two employees in this department still have steps for management that would be around 2 - 2 1/2 percent
adjustment which is typical each year.
Williams voted No because of the $50,000 and he feels the city is not accomplishing something concrete with
the program.
Fine's No vote reflected the fact that when a department like Public Works or Parks with 40 or 50 employees
has a director with a certain salary it cannot justify paying the same salary to a director of a department of 4.
Hartzell wanted the record to reflect that she is changing her vote to a yes.
Freeman considered that a purvey of his responsibility is to set the City up in a certain way and as he had not
heard the council say that they wanted to do something different was surprised to hear this.
Sharon Laws presented. The department goals for the next year are to complete the inventory and mapping of
the seniors in the city who have special needs. They hope to secure two computers to give more computer
training and to have those computers available for internet use by the seniors. Also hope to increase the
contact and interaction with the schools especially in music, art and writing, that seniors and youngsters can
share.
Levine questioned the discontinuance of the bus ridership. Laws replied that the need to discontinue the service
was because of more assisted living facilities, and also the taxi program, Valley Lift, has come into being which
provides Americans with Disabilities Act funds so people may ride the taxi. Also, the very old who were riding
the bus are not being replaced by newer retirees as they are still active and not needing the bus yet.
Reid questioned how issues such as loose tiles in the facilities and the acoustical problems are addressed as
the Senior facilities are owned by the Parks Department.
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Laws replied that the tiles have been repaired and they are looking at flooring that is still danceable. Laws will
contact the Parks Department regarding flooring/carpet.
Barbara Christensen introduced herself and explained she is an elected official. She explained her position and
duties as outlined in the City Charter. Her duties include going to council meetings and taking minutes, keeping
records of all city and legal proceedings, and of banking services and the investment portfolio. The cost of
banking services has increased considerably, around $3,500 and the reason is because the City accepts credit
cards for payments, and electronic payments for the utility payments. Although the cost has increased, it has
decreased the utility staff's time to handle the manual paperwork. In addition, the County raised recording fees,
such as lien fees, and around 200 per year are handled by her office. She monitors the Codemaster, which is
for the Municipal Code, and the cost for maintenance and upgrade fees is in her budget, and also the Laserfiche
program which handles document imaging. This explains the increase in 605 and 606 which are the costs
associated with the Codemaster and Laserfiche.
Fine asked how the Municipal Code review is in the Legal Department's budget and asked if this would affect
the City Recorder's budget. Barbara replied that it would not.
Kenefick questioned the level of staffing in the Recorder's office, and Barbara clarified that she herself is the 1
FTE. She said her requested budget was for one full time position, not the additional 1/2, as she feels her
position demands a full time position in her office.
Levine asked if Barbara is also the Elections Officer and she confirmed this. He also said he recommended to
council that the City Recorder's office have the responsibilities of overseeing the contract and database city wide
to ensure that all contracting by the city is in compliance with all federal, state and local requirements. Levine
said there is nothing in the budget for that and if council decides to put that into her department, he asked how
much staff time would be needed. Christensen replied that no conversations have taken place about this. She
currently has a staff person in her office from 3 - 5:00 p.m. each day, and this year's budget will change her
personnel to one half-time person.
Reid suggested that next year she would like to revisit how the half-time is going as she feels a full-time person
is needed in the City Recorder's office.
Fine asked what it would cost the city to have a full-time rather than a half-time assistant, and Christensen
replied that the difference would be about $18,000.
Williams questioned Freeman as to whether the city has flexibility to provide the City Recorder with the help
needed, another $18,000 could be found if needed, given the size of the city's budget.
Christensen confirmed that the process begins with the City Administrator, and her department goes through the
same process as every other department.
Levine questioned whether it is appropriate to send two proposals to the overall budget committee. One to
expand the City Recorder's office to include a full-time employee should the city council decide to use her office
to be the contract review administrator.
Hartzell suggested that the committee forward this budget with a recommendation for adoption with the
secondary recommendation that it be put on the agenda for the September or December meeting of the budget
committee to get a report back.
Christensen this discussion should be between her and the City Administrator as they build on the budget.
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None
Meeting Adjourned at 5:47 p.m.
Respectfully submitted,
Fran Berteau
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