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HomeMy WebLinkAboutmin of light comm 07162008 Mansfield Municipal Electric Department Minutes of Light Commissioners Meeting July 16, 2008 '~ ~~IVED C,'" r"....-' CE '\--) Lo'j j'" LJUB S ! 0 l\ '(\. '2 I 1-\ !U. Present: Chairman Ann Baldwin; Vice Chairman Jess Aptowitz; Cler,~ !SevIn MorabJ; Commissioner George Dentino; Commissioner Levine; Director Gary Babih; Engineer 'Coos T (.~ Cox; Engineer Ann Langille; Staff Accountant Ken Thomson; Line Foreman Gary D' Ambra; Office Manager Laurie Anderson; Financial Assistant Jacqueline Lee and Town Manager John D' Agostino Light Commissioners Meeting The meeting was called to order at 7:03 PM followed by the Pledge of Allegiance. Motion: To approve the minutes of the June 23, 2008 Light Commissioners Open Session (Aptowitz/Moran) Passes 3/0/1 (Levine abstained) Motion: To approve but not release the minutes of the June 23, 2008 Light Commissioners Executive Session (Moran/Aptowitz) Passes 3/0/1 (Levine abstained) East Mansfield Substation Public Meeting Overview - Director Babin began by clarifying something from his presentation at the July 14 public hearing regarding the proposed East Mansfield Substation. Parcel 38-39 would require MMED to cut down trees as all of the land needed for construction of the substation has not already been cleared. Director Babin felt his prior statement regarding this parcel on Monday night may have been misconstrued and apologized for any confusion. Director Babin then stated that as a result of the July 14 public hearing there were two issues that needed to be addressed. The first issue was that on the EMF issue an electric field strength calculation had not been done and the second issue was whether a special permit would be required. In regards to the electric field strength calculation, Director Babin had spoken to Allan Rice of PLM after the public hearing. Mr. Rice, who was in attendance, then explained to the Board that the computer model which was used to calculate the magnetic field strength could also be used to calculate the electric field strength that the proposed substation would create. He then distributed copies of his electric field calculations and pointed out they were well below the threshold values the Massachusetts Energy Facilities Siting Board (EFSB) had used on cases as well as those of the Institute of Electrical and Electronic Engineers (IEEE). Commissioner Dentino joined the meeting at 7:10. Director Babin then addressed the second issue of the special permit. He stated that Article 3.4.1 for Municipal Use requires MMED to obtain site plan approval but not a special permit. - He said that Town Manager D' Agostino received correspondence from Building Inspector Nick Riccio which stated that only under Article 3.4.8 would a special permit be required. Director Babin said that Article 3.4.1 is permissible for Municipal use and that the proposed station was to be constructed by the Town and not by a Corporation. Motion: To accept the recommendation of MMED staff to develop the Bird Road Parcel 39-38 as the site for the East Mansfield Substation and to direct MMED to obtain permits and approvals needed and to also direct MMED to obtain all necessary approvals and to negotiate contracts with NGRID, ISO New England and any other necessary or relevant agency (Levine/Moran) Commissioner Levine then mentioned receipt of letters from some of the neighbors who would be affected by the proposed new substation. There were letters from the LeBlanc family from Mary Dee Lane, the Walker family from Bird Road and the Bush family from Bird Road. She praised them for their letters, saying they were well written. She stated that mitigation is important but asked them to put themselves in the Light Commissioners shoes. She said this was not an easy decision to make and she posed the question of how could they ask the other residents of the Town to dig deeper into their own pockets to fund the more expensive cost associated with Parcel 39-10. She also said that the unsightliness of the station is something that could be addressed in the future by the Planning Board and the Conservation Department. Commissioner Levine then added the Board has 9,000 customers to consider but that she would keep these letters for future consideration. Clerk Moran said that in the last several days he had talked to many people about the substation and went out to the site a couple of times with Commissioner Dentino. He said that he doesn't think it's the cost of Parcel 39-10 which is the determining factor for the preferable site but that Parcel 38-39 is the most viable. It is the best site because of it's proximity to the power lines. He also added that it's time to move forward with this. Vice Chairman Aptowitz stated that he has been spending a lot of time on this issue also. He said he realizes that this has been an on-going issue for quite some time but said he'd like some more time to investigate things. Safety is his number one issue. Commissioner Dentino said that he has been involved with this issue for a number of years and has seen all ofthe sites. He believes Site 38-39 is the best site for the Town as Site 39-10 is more costly. He does question "Municipal Use" and its interpretation and its intent. He is not sure the special permit is a bad thing because it gives people input as far as aesthetics, etc. He believes the special permit process' intent is to give people input. Town Manager D' Agostino said that with the Municipal Review Process, they would let neighbors know about any meetings. Commissioner Dentino said that he wanted to vote on the issue of the parcel that evening but leave out the part about the special permit. - Town Manager D' Agostino said if there's a special permit involved then they don't have to go through the Municipal Review Process. He explained that with a special permit you cannot go forward without adherence to the conditions of the permit. He also said he would like to take the letter which had been submitted by the resident's lawyer, Attorney Carroll, and review it with Town Counsel. Commissioner Dentino reiterated that he would like to vote the parcel that evening but take more time to look at the municipal use process vs. the special permit. He suggested that perhaps they could come up with something themselves which would better serve the public. Director Babin stated that MMED can't put everything on hold because there are outside factors to be considered such as NGRID and ISO. He commented that this is a lengthy process with several items on a parallel track. Town Manager D' Agostino offered the land lawyer's packet of information for consideration at the next Selectmen's meeting. Commissioner Levine said that as Chairman of that Board, the agenda for the next Selectmen's meeting was full. She suggested possibly they could fit it in at the meeting following that. Motion: To accept the recommendation of MMED staff to develop the Bird Road Parcel 39-38 as the site for the East Mansfield Substation and to direct MMED staff to obtain permits and approvals needed and to also direct MMED to obtain all necessary approvals and to negotiate contracts with NGRID, ISO New England and any other necessary or relevant agency (Levine/Moran) Passes 4/0/1 (Aptowitz abstained) Mansfield Electric Assistance Program- The Director of Social Services, Gale Farrugia, was in attendance to address the Board regarding the Mansfield Electric Assistance Program. She also introduced Pam West from Social Services, who was present to clarify anything that may be needed. Director Babin told the Board that Commissioner Dentino had previously asked for follow-up information on clients who had previously received assistance. Director Babin reported that only three of fifty clients assisted in FY08 did not follow up on commitments they had made as part ofreceiving the money or had not made any payments. He said that 95% of the clients have followed up on the requirements of the Light Department. He also reported that there is now $29,279 remaining in the fund. Ms. Farrugia gave the Board an overview of the Social Services department, explaining that they provide many different services for 370 active clients. She said they provide more than just electric assistance. Their two major programs are Self Help and Good Neighbor Energy Assistance. Mansfield Electric Assistance is their third largest program. She explained that $400 is the maximum amount of assistance available and that the client must be income eligible. If someone applied for fuel assistance (Self Help) then they are not eligible for Mansfield Electric assistance. Commissioner Dentino said that the information that Ms. Farrugia was providing to the Board did not address the questions he had previously asked. He said he wanted to know about MMED's program not the other programs. He stated that the other programs have nothing to do with the Light Commissioners. Director Babin explained that he had invited Ms. Farrugia to address the Board and was taking the opportunity to educate new Board members on the program. He pointed out that many of the questions that typically come up later in the year when requests for money are made could be addressed now. His hope is not to delay assistance requests later due to informational requests. Ms. Farrugia then informed the Board that her department refines the guidelines for assistance every year. She said they are always trying to improve and stretch their dollars. Town Manager D' Agostino asked Ms. Farrugia what she anticipates Social Services will need this year. She answered that not yet knowing what people may be paying for oil or electricity this winter, she anticipates requesting an additional $30,000. Commissioner Levine inquired as to whether Ms. Farrugia services everyone or if any customers are refused. Ms. Farrugia answered that they try to help everyone as long as they fall within the guidelines. Commissioner Dentino clarified that the question he had previously asked was in regards to customers who had their electric deposit paid by Social Services then ended up being terminated for non-payment. Director Babin did not believe that was the question that Commissioner Dentino had originally asked. Commissioner Dentino then asked Ms. Farrugia what Director Babin had actually told her the question was. A discussion then ensued which ended when Chairman Baldwin gaveled Commissioner Dentino and moved the meeting along. Financial Statements May 2008 - Staff Accountant Thomson began by explaining that net income for FY08 increased by $1,665,385 because the auditors recognized the cost of the Beliveau litigation settlement in the FY07 financial statements. Director Babin stated that MMED's cash position through May 2008 was $2,624,334, up slightly from $2,594,737 for the same period in FY07. Energy sales for May 2008 increased 2.3% from May 2007. Year-to-date energy sales are now up 4.3% from FY07. Director Babin then said MMED's depreciation fund balance stands at $3,639,111, up from $3,170,128 in May 2007. Director Babin said he would run the numbers in answer to Vice Chairman Aptowitz's question of what residents could anticipate for next year so they could try to budget if they so desired. Proposed Service Termination Policy for Commercial Accounts and Proposed Commercial Customer Deposit Policy - Town Manager D' Agostino told the Board that the proposed deposit policy would institute a change from accounts being 90 past due to accounts being 60 days past due before termination procedures would begin for commercial accounts. Director Babin added that this policy would also help clearly define things for the Financial Assistant involved with collections. Commissioner Dentino commented that there had already been a 60 day policy in place, it just hasn't been followed. Director Babin clarified that this policy would now define and memorialize the 60 days. Commissioner Dentino reiterated that there was a black and white policy that was simply not followed which resulted in costing the Town a lot of money. Director Babin said that he admitted MMED had made mistakes on a couple of accounts but reiterated that MMED does a good job at collections. Commissioner Dentino, however, believed that someone in the department did not do their job. He noted that the residential termination policy had been followed for commercial customers and that payment plans had been established which that person had no right to do. He also added that the payment plans which had been allowed were not followed. Motion: To approve a three month deposit policy for commercial accounts as well as to serve notification of termination when a commercial account becomes sixty days past due. (Dentino/ Aptowitz seconded for discussion) Clerk Moran said he would like to see a payment plan as an option for commercial accounts as long as it's policed very carefully. Vice Chairman Aptowitz believes that with a commercial account, whether they own or rent, a deposit should be required. He also suggested that termination procedures begin on a commercial account after only 30 days past due instead of 60 days. Commissioner Dentino pointed out that businesses are given enough of a break with tax incentives and a tax rate that is almost the same as the residents. He pointed out that MMED has lost money because of the payment plans they have given out. He does not believe payment plans are in the best interest of the ratepayers. Chairman Baldwin didn't agree with the part of the proposed policy which allowed the commercial deposit to be waived if the customer enrolled in the direct debit program. She believes every commercial customer should make a deposit. Director Babin then recommended to the Board that they keep the termination policy and the deposit policy separate, in order to keep them defined. An amendment was then made to the previous motion made by Commissioner Dentino to change sixty days to thirty days. - Motion: To approve a three month deposit policy for commercial accounts as well as to serve notification of termination when a commercial account becomes thirty days past due. (Dentino/Aptowitz) Fails 0/4/1 (Dentino abstained) Motion: To accept MMED's proposed Commercial Customer Termination Policy as presented with the adjustment of commencing with termination procedures when the customer's account becomes 30 days past due instead of the recommended 60 days. (Aptowitz/Levine) Passes 5/0 Motion: To accept MMED's proposed Commercial Deposit Policy as presented with the exclusion of No.2 which waives the deposit if the customer enrolls in direct debit and No.7 which would not require an owner of the commercial premises to place a deposit. (Aptowitz/Levine seconded for discussion) Director Babin reiterated to the Board that he was not looking for a vote tonight. Vice Chairman Aptowitz, however, said he was very anxious to move forward and get something in place. Clerk Moran believed that waiving the deposit for a business if they enrolled in direct debit had merit. For a new business coming into Town, he thought it should be an alternative, especially if they did not have that large amount of money to make the deposit. Commissioner Levine suggested considering a friendly amendment of "should the commercial customer be terminated, they need to make a three month deposit in order to be reinstated" . Vice Chairman Aptowitz said that it is the responsibility of the Board to protect the ratepayers. Ratepayers should not be subsidizing businesses. Commissioner Levine commented that if a business doesn't have the money, then maybe they shouldn't be in business. Clerk Moran said that smaller businesses have a smaller margin and the amount of money needed for the deposit could mean the difference between them opening up shop or not. Motion: To accept MMED's proposed Commercial Deposit Policy as presented with the exclusion of No.2 which waives the deposit if the customer enrolls in direct debit and No.7 which would not require an owner of the commercial premises to place a deposit. (Aptowitz/Levine) Fails 2/3 (Dentino, Levine and Moran against) Motion: To accept MMED's proposed Commercial Deposit Policy as presented with the exclusion of No.7 which would exempt the owner of a commercial property from being required to place a deposit. (Aptowitz/Levine) Passes 5/0 - Motion: Once a commercial account has been terminated for non-payment, the customer would be required to pay the arrear ages plus a deposit equal to three months of usage plus any associated fees. (Aptowitz/Levine) Passes 4/1 (Moran against) Vice Chairman Aptowitz questioned No.8 of the Commercial Deposit Policy which gives the customer the right to appeal for a reduced deposit after one year and would be at the discretion of the Light Department. Commissioner Levine commented that would be the Light Department's job, not the Boards. She added that the Light Department could simply notify the Board if they were to do this and Vice Chairman Aptowitz said he was okay with that. FY08 Costs for Employee Benefits, Insurances, Town Services and Pilot Payment- Director Babin reported that MMED paid $1,166,312 for the cost of Employee Benefits, Insurances, Town Services and Pilot Payment in FY08. He also noted that from FY06 to FY08, employee benefit costs have increased by $68,000 or 6.2%, most of which was directly attributable to increased health care costs. There were no questions from the Board. Informational Items- Director Babin provided the Board with a packet of information in response to questions that had been asked at previous meetings. The packet included a summary ofMMED's membership costs in MMWEC; a summary of the legal costs incurred by MMED from FY06 through FY08 and a summary of gasoline costs. Commissioner Dentino commented that the Board needs to make a decision by December whether MMED should continue with MMWEC. He reiterated that he had also asked about other entities and what services they could or wouldn't be able to provide that MMWEC had been providing. Director Babin responded that he had a meeting scheduled for the following week regarding this and would report back at the next Light Commissioners meeting. Old and New Business - Commissioner Levine congratulated Director Babin on being elected NEPP A's new president. Clerk Moran thanked everyone for their assistance and insight regarding the new substation. Vice Chairman Aptowitz thanked Director Babin for getting the termination and deposit policies together. Vice Chairman Aptowitz requested that Director Babin make an appointment to visit the Taunton Municipal Light Plant (TMLP) to view the recently constructed substation. Vice Chairman Aptowitz then told Town Manager D' Agostino that he and Clerk Moran had yet to receive the information that Attorney Kesten was supposed to send them. Vice Chairman Aptowitz indicated he would like members of the FINNCOM invited to the review of the FY07 Light Department audit. '. Commissioner Dentino inquired about the information he had previously requested about professional development costs. Town Manager D' Agostino then distributed copies of a three year breakdown of those costs. Chairman Baldwin presented a letter from Douglas Shepard who was requesting a waiver on the service fee for the electricity for his Haunted Hollows site. Director Babin indicated they would still be responsible for setting up the site so MMED could make the connection and that they would be responsible for the metered cost of electricity. Motion: To approve a waiver of the $150 service fee to connect Town electricity to the existing poles adjacent to the site of Haunted Hollows (Levine/Moran) Passes 5/0 The next Light Commissioners meeting will be held on Monday, September 8. Motion: To adjourn the Light Commissioners meeting at 10:10 (Aptowitz) Passes 5/0 Respect~u1J submitted: Jacqueline Lee 9/08/08 ~tJ~ Signature of Clerk q/~!{)&- Date of Approval -