HomeMy WebLinkAbout2000-05-18 Budget Committee Minutes
BUDGET SUBCOMMITTEE MINUTES
—ELECTRIC & AFN—
MAY 18, 2000
CIVIC CENTER
Committee members present: Steve Hauck, Martin Lavine, David Williams, Cameron Hanson, Beverly
Kenefick, James Moore, David Fine, Regina Stepahin, Don Laws, Cathy Shaw. Staff present: Mike
Freeman, Greg Scoles, Pete Lovrovich, Patrick Caldwell, Richard Holbo, Sheri Bruce.
Meeting began at 7:05 p.m.
I. OPENING DISCUSSION
Patrick Caldwell explained the fund changes involved with the budget proposal made by Staff.
Interfund Loans have been reduced (Wastewater & Cemetery Trust Fund eliminated). The net affect
will be a reduction in the overall budget by $1.3 million.
This comprises a reduction in the Interfund Loans by $1.1 million and subsequent adjustments made
in the Telecommunication figures (December, 1999 figures were originally used and adjusted to the
April, 1999 figures thereby producing the reduction). In addition, programming costs were over
estimated by $162,000.
Staff recommended that the Committee review the revised budget and accept this alternative to the
original proposed budget document.
II. PRESENTATION
Overview
Pete Lovrovich, Director of the Electric & Telecommunication, provided an overview of the Electric
and Telecommunications department. There are three divisions Electric, Computer Services and
Telecommunication (new to the City the previous year).
Electric Division
The anticipated number of homes that new service connections was 125 and exceeded that number
by rising to 250. Cameron Hanson raised the question, “what was the reason for the increase?”
Lovrovich responded that the business has been primarily residential due to an increase in new home
construction.
Green Power Initiatives
Green Power is an additional $135,000 per year and the purchase begins July 2000. The dollar
amount will be absorbed, evaluated with the Council the following fiscal year, and determined if it will
affect the overall increase.
Williams comments that the ordinary electricity (hydro-electric power) purchased by the City is 2.9
cents per kilowatt and asks what do we pay for Green Power? Lovrovich responds that it is $135.00
per megawatt hour (13.5 cents per kilowatt).
Williams questions if this is an appropriate expenditure of public funds. Is this a policy decision to
made by Council or a budget question? Lovrovich responds by saying that this was a decision made
based upon the studies done on the various larger cities within Oregon. Lavine notes that he has
trouble determining if the expenditure is feasible or not. Laws indicates that he is open to hearing all
objections and the matter can be addressed to the full budget committee and a vote can be taken.
Computer Services Allocation of Funds
Hauck notes that Computer Services “were woefully understaffed” for the amount of work that they
were producing and is glad to see the increase of appropriate personnel.
Budget Subcommittee—Electric & AFN Page 1
AFN—Telecommunications Division
Referring to the Director, Lavine asks what is his allocation of time by division. Lovrovich responds
that his time is allocated by 20% to AFN and the remainder Electric.
Freeman notes that there has been some question regarding AFN and the capability of this utility to
provide its own way. In answer, the utility is treated the same as any other utility in terms of central
services.
Changes within Telecommunications Fund
Interfund Loan requirements reduced to $1,599,000 down from $2,766,000 as indicated
(budget document page 168)
Reduction due in large part to misallocation of costs for set top boxes and misallocation of
personnel
Projections are meeting the adopted AFN business plan
III. DISCUSSION
Fine asked if the City will continue to retain the current marketing person after hiring an additional
marketing FTE with a strong marketing background specifically for AFN? Freeman responds by
saying that the responsibilities are under review with the anticipation of shifting those responsibilities,
as needed. As the build-out of the AFN system occurs, over the next year, the issue (FTE/time
allocation) will be revisited at the appropriate time. Lovrovich commented that he saw no need for an
additional FTE since there is a qualified individual with a strong marketing background already on
staff. Furthermore, Freeman noted that the intensive marketing efforts in the direction of AFN data
and AFN business have not yet begun. The result will be constant marketing challenges. In addition,
a review of time allocation via Central Services or Telecommunications has yet to be completed.
IV. CONCLUSION
Upon conclusion of committee discussion, Williams asked if they concurred to propose a motion.
Fine moved to submit the proposed, amended budget (inclusive of staff proposed changes) to
the full budget committee for approval. Hauck seconded. All AYES. None opposed. Motion
passed.
V. PUBLIC INPUT
None
Moore moved to adjourn Stepahin seconded. Meeting concluded at 9:05 p.m.
Respectfully submitted,
Sheri Bruce
Budget Subcommittee—Electric & AFN Page 2