PUD 'stand pat' results in Zipp layoffs

Move part of reorganization at utility

EPHRATA Next week will be the last week for a handful of Zipp employees at the Grant County Public Utility District.

With the approval of a severance package by the commission last week, five telecommunications employees have been laid off. The layoffs are just one part of a number of changes taking place at the utility, as a result of a March decision by the PUD commission to stand pat build out of the county s fiber optic system in 2005.

The PUD commission voted three to two last week to accept the package, Commissioners Bill Bjork, Greg Hansen and Randy Allred voted in favor of package, and Commissioners Tom Flint and Vera Claussen voted against it.

By the same three-to-two count, the PUD commission voted to implement the stand pat plan earlier this year. The plan will allow for fiber access to remain in areas where it is available, but areas of the county without fiber will continue to go without access until build out continues.

Without the on-going construction on the network, the PUD said, the network does not need and cannot support the same level of support staff. PUD figures indicate that the Zipp network had an operating loss of $1,863,653, and spent an additional $4.3 million on capital expenses.

PUD General Manager Tim Culbertson said the implementation of the stand pat has eliminated nine positions, but has actually impacted five people who have not yet been able to find employment elsewhere at the utility.

The layoffs are part of a number of actions being taken to implement the commission s stand pat. Culbertson said Monday that the PUD is also eliminating the telecom division and moving bits and pieces of that division into customer services or support services. The PUD has also been asked by the commission to look at reducing Zipp operating costs, and looking for a more efficient way to construct on the network.

A reorganization at the utility is also underway, and Telecommunications Director Larry Jones will soon be moving to a new position as director of support services on the electric side of the system.

Telecom is being blended into customers services and support services, Jones said.

Primary work on the Zipp network will be devoted to by current Zipp employee Russ Brethower, Jones said.

Fiber build out could be revisited in the future, but Culbertson said the PUD is now looking at the stand pat model based upon the commission s decision and the PUD s current financial position.

We are looking at annually, how could we build out the system, Culbertson said.

Work will begin on the 2006 budget in the next few months, and Jones said PUD employees will then find out what kind of Zipp funding will be available next year.