1997 ADJ MIN JUN 30 - Laserfiche WebLink

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point person for customer attraction/customer retention in the deregulated industry. Presently, there is no one dedicated to the large accounts, to go out and attract new accounts or to work actively with organizations who want to relocate or inquire as to the service we can provide and then negotiate a portion of those services. At recent budget meetings, Director Clarke said that the Energy Service Specialist position previously budgeted for in the Rates Regulatory Management Services Division had been cut. He asked for approval of the position; however, if the position was not approved, Director Clarke asked that the expenses, approximately $60,000, be reinstated to the Professional Services Account and that he be allowed to contract for such services. CM Sanders moved to approve Electric Department's budget with the inclusion of the Energy Service Specialist position, which is going to administer deregulation. CM Chastain seconded the motion. Discussion ensued regarding the impact on the budget. Acting City Manager Harmon expressed concern that after budget meetings, all City Directors had agreed to abide by the direction of Council and had the directors known they could request additional positions, Council would have heard from them. She asked for a delay until July 15 when candidates for Interim City Manager would be presented and if an appointment was made the matter could then be considered from an objective view. Director Clarke said the position was originally in the budget and as far as the revenues and expenses, the budget was balanced and now basically there was a $60,000 surplus. CM Bennett declared that the promise to provide employee raises was paramount and suggested a delay until July 15 to have the entire Council present. With deregulation effective July 1', CM Sanders said it was critical and imperative to seize the opportunity to be proactive and attract corporate customers. Finance Director Vega agreed that Electric Department did have a balanced budget and the $60,000 was a surplus. With deregulation, the City could potentially lose major customers to another electric utility causing Electric Utility's revenue to decrease resulting in a decrease to the General Fund. Finance Director Vega submitted that revenues are estimated to be $27.6 million and expenditures are $27.9 million. There is a $300,000 difference, of which is depreciation, a non-cash expense, a total of $475,000. At the suggestion of Assistant Electric Director Terwin, Utility Director Clarke said he could support Council's desire to keep the submittal level the same, but allow Electric Department to readjust the budget to accomplish filling that position immediately. CM Sanders reiterated his original motion to approve Electric Department's budget, inclusive of $60,000 for the marketing position. CM Chastain withdrew her second. CM Cook seconded the original motion. The motion was rendered moot with a tied vote: CM Chastain/Bennett voting "No" and CM Sanders/Cook voting "Yes." Absent were CM Hutton, CM Sandoval and Mayor Gaytan. Motion/second by CM Chastain and Bennett to approve the budget as presented and direct staff to go through the budget, make whatever cuts are required to find another $60,000 for the City Council Minutes - June 30, 1997 Page 7 JUN 3 0 1997