HomeMy WebLinkAbout2006-05-18 Budget Committee Minutes
BUDGET COMMITTEE MEETING
MAY 18, 2006 – PAGE 1 OF 4
Budget Committee Meeting
Draft Minutes
May 18, 2006 7:00pm
Civic Center Council Chambers, 1175 East Main Street
CALL TO ORDER
The Citizen’s Budget Committee meeting was called to order at 7:10 pm on May 18,
2006 in Council Chambers at 1175 East Main Street, Ashland Oregon.
ROLL CALL
Mayor Morrison was absent. Councilor Amarotico, Jackson, Silbiger, Hardesty,
Hartzell, and Chapman were present.Budget Committee members Bond, Mackris,
Stebbins, Levine, and Gregorio were present. Committee Members Everson and
Thompson were absent.
STAFF PRESENT: LEE TUNEBERG, AMINISTRATIVE SERVICES DIRECTOR
JOE FRANELL, INFORMATION TECHNOLOGY DIRECTOR
CINDY HANKS, PROJECT MANAGER
BRYN MORRISON, ACCOUNT REPRESENTATIVE
APPROVAL OF MINUTES
Approval of minutes from previous Citizen’s Budget Committee meeting dated:
th
April 27, 2006
Councilor Silbiger asked that the spelling of his name be corrected.
Jackson/Bond ms to approve minutes as amended. All Ayes.
PUBLIC INPUT
None
INFORMATION TECHNOLOGY
Joe Franell presented the Information Technology (IT) department budget. He spoke to
the preparation of the budget and the divisions located within the department. He spoke
to the organizational chart for the department and that he is reviewing the current
structure for the needs of the divisions. There is one position open currently for an AFN
Network Administrator. The Committee asked when Cable Television (CATV) is
eliminated, which positions are directly related to that and will they be eliminated. Mr.
BUDGET COMMITTEE MEETING
MAY 18, 2006 – PAGE 2 OF 4
Franell responded that the Head End Technician is the only one that is directly related
and will only be a 1.0 FTE for half of the year and it is represented in the position profile
as .50 FTE showing the need for only half the year. The CATV Manager position will
not be eliminated and the duties and responsibilities may change for that position. The
goal is to look at operations and efficiencies in the next year and develop an IT plan.
They will start this process by reviewing the old plan.
The Committee questioned the computer technician that is located in the Police
department and why it is not located in the IT department. It was discussed that the
current position is .50 FTE and one of the parking lot items is to increase it to 1.0 FTE.
Mr. Franell responded that the position is funded currently through DEA funds. In the
agreement with the DEA, the position had to be directly managed by the Police
department. Mr. Franell believes IT can work with the Police department to accomplish
the computer technician needs. He will be looking into how Computer Services can
provide support for the Police department.
Mr. Franell spoke to the possibility of the City becoming an ISP and will adjust staff
according. They may possibly transition internal help desk employees to help with
external customer service.
Mr. Franell spoke to the computer services division and their goals. He spoke to the
salaries and wages change from 2004 to 2007, now included is the in house help desk
which was previously outsourced. 2006 includes the increase for the director and
restructuring of the division. Rental, Repair and Maintenance includes a new vehicle in
the department. He spoke to the Communications line item and that funds are budgeted
in Capital Outlay for equipment but if the items are not able to be capitalized, then they
are shown in the Communications actual figures. Contractual Services is budgeted for
NT and Netware services which Mr. Franell will look into more specifically and get back
to the Committee on. Miscellaneous Charges and Fees are software and facilities
charges. Prior to 2006, the department did not pay facilities charges. The Committee
asked if the division does software support and training. Mr. Franell responded that they
do software support, and will be working on training in the future. He has asked the
division to start basic level Microsoft training for City staff. He would like to offer classes
for the internet side to the public, possibly an internet safety class. Other Purchased
Services is training and travel, that they plan on utilizing in the future.
Mr. Franell spoke to the high speed internet division. He explained that the change in
Fringe Benefits is that the City budgets for any unfilled position, full family coverage.
The Committee questioned why the Salaries decreased while the Fringe Benefits
increased. Lee Tuneberg, Administrative Services Director responded that staff will look
into it. Mr. Franell explained that Materials and Services is bandwidth. He explained the
need for the City to have redundant pathways in bandwidth from here to Medford. The
City did not get enough bandwidth originally to cover incase of a problem, so they have
had to budget to get more. The Committee questioned which vendor they will use. Mr.
Franell explained that he will be looking at the City’s current providers and others to
determine which fulfills the needs of the City. He explained that Capital Outlay is the
BUDGET COMMITTEE MEETING
MAY 18, 2006 – PAGE 3 OF 4
equipment that is running the data network. The equipment is near the end of it’s life
and needs to be replaced. He estimated the City will need to spend $500,000 to bring
the network up to speed, but will not ask for it all in the first year. They will only buy a
few pieces for now. Mr. Franell stated he would like to demonstrate some success
before he asks to increase the budget.
Mr. Franell spoke to the CATV budget. He stated that by the end of the calendar year,
the City expects to be done with CATV. They are looking at alternatives for customers.
Customer relations and promotions will be transitioned for communicating to customers
on the elimination of CATV. His intent is to gear up the internet product. The Committee
asked if Other Purchased Services was advertising costs. Mr. Franell responded it is.
Councilor Hartzell asked if Mr. Franell evaluated decreasing the budget. Mr. Franell
responded that there are additional product offerings that they are looking into currently
department wide. The Committee asked if this budget included them becoming an ISP.
Mr. Franell responded it is one option. He is hoping the ISP owners and the City can
collaborate and does not want to steal their customers. He would like to look at niches
to fill to get more of the market share. He added the City will become an ISP if they can
fill a niche, but they are not sure if they can do that yet. It was mentioned that Mr.
Franell is in his eighth week of employment.
It has been less than a month since the City decided not to continue with CATV. The
Committee asked about the barriers to expanding outside the City limits. Mr. Franell
explained the importance of the need to focus on unserviceables within the city first. It is
important to recognize people that live outside the city limits that need service. Mr.
Levine added that originally when AFN was presented; it was presented with a policy to
not extend beyond the limits of the city. Mr. Franell added that they need to revisit goals
and have a clear purpose as well. Mr. Levine asked if there were any problems with the
relationship with Hunter Communications. Mr. Franell responded that there is not and
nothing in the agreement that says they cannot compete with Hunter.
Mr. Franell spoke to the high speed division. High speed is the direct fiber connection to
businesses that use more bandwidth than residential. He explained that with the
elimination of CATV they will be shifting the focus to high speed products. It was
confirmed that the director’s wages are split between the divisions of IT.
Mr. Franell spoke to the long term plan on page 4-46. 2005 shows the $15.5 million
bond offering and the $898,000 ending fund balance was supposed to be available to
make the first payment this year. They have pulled debt service out in the 2006
amended budget. 2006 estimate charges for services are flat as CATV revenue goes
away, charges for services will decrease. Promotions personal services as well as
materials and services reduce as CATV goes away. Internet and high speed will
increase. 2008 into the future shows conservative revenue growth. He added that they
are behind on preventative maintenance for the power supply and the Capital is shown
for maintenance and new product lines.
BUDGET COMMITTEE MEETING
MAY 18, 2006 – PAGE 4 OF 4
Roberta Stebbins offered reasoning to why she would not approve the department
budget. See attached.
Bond/Hartzell ms approval of the budget as presented. 10 Yes, Roberta Stebbins
opposed.
Mr. Tuneberg reminded the Committee that the next two meetings are on Monday, May
22 and Wednesday May 24. Staff will present the items that have been requested by
the Committee at that time.
ADJOURNMENT
The meeting was adjourned at 8:15 p.m.
Respectively Submitted,
Bryn Morrison
Account Representative