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HomeMy WebLinkAboutLight Comm. 10/18/2021Mansfield Municipal Electric Department RECEIVED Minutes of Light Commissioners Meeting: l Ml ERKS OFFICE October 18, 2021 2022 FEB -2 A l: S9 Present: Chair Frank Delvecchio, Vice Chair Jess Aptowitz, Clerk Neil Rhein Commissioner Mike Trowbridge, Commissioner Steve Schoonveld and Light Dena t%irlI—Joseph Sollecito r' ' ', (=- The meeting was held at the Mansfield Town Hall Room 3AB and called to order at 5:35 PM followed by the Pledge of Allegiance. A complete copy of the Board packet containing all documents that are referenced in the minutes is on file at the Mansfield Municipal Electric Department office. Chair Delvecchio stated that agenda items 2 and 3 regarding the MMED Manager's contract were being moved to the end of the meeting. Citizen Comments — none Motion: To approve minutes of the September 20, 2021 Light Commissioners meeting (Rhein/Aptowitz) Passes 510 MMED Audit for year ending June 30, 2021 — Manager Sollecito introduced Michael Nelligan, CPA/Partner from Powers and Sullivan, who would be reviewing the MMED audit report for year ending June 30, 2021. Audit Committee Chair Kris Moussette opened the Audit Committee meeting. Mr. Nelligan said that he does a stand alone report for MMED as the Town's audit report is never ready on time. He said that MMED's report is ready and he is looking for approval this evening. Mr. Nelligan said that the audit was done remotely and that they had everything they needed from MMED in a timely manner. He reported that MMED's net position decreased for the year by $84,000 compared to an increase of $732,000 in 2020. This was due to a change in monies coming from MMWEC. Operating income was $921,015 and MMED has no debt. Receivables were down from the previous year and inventory was about the same as the prior year. Mr. Nelligan pointed out that MMED has no flexibility with the pension liability but they do with the OPEB. Revenues were down mostly because of closure of businesses due to COVID. He said that no new notes were added to the audit report this year. Members of the Audit Committee, Chair Kris Moussette and Mike DeSamis were in attendance to give their approval. Vice Chair Aptowitz, also a member of the Audit Committee, said he was comfortable with moving things along. He said that he has seen these audits for years and is very comfortable with Mr. Nelligan. Motion: To approve the MMED Audit for the year ending June 30, 2021 as amended with correction of the calculation issues noted by Michael Nelligan (Moussette/DeSantis) Passes 3/0 Motion: To close the Audit Committee meeting (Moussette/Aptowitz) Passes 3/0 Motion: To accept the MMED audit as presented and approved by the Audit Committee (Trowbridge/Aptowitz) Passes 5/0 Energy Projections & Revised MMED Power Forecast — Mayhew Seavey of PLM gave an energy market update. He said that over the past six months, the futures contract price of energy for the upcoming winter has almost tripled. Major factors are increased demand, skyrocketing global energy prices and market speculation. He said that firm forward prices are far above any spot market prices. MMED has a hedge in the Stony Brook units which is less expensive energy than the current forward market price. Mr. Seavey recommends no winter hedging until the forward price falls significantly below the Stony Brook price. Grant of Rights — Manager Sollecito explained that the Grant of Rights had been previously omitted from MMED's Customer Service Terms and Conditions policy book. He was suggesting that it should be added to avoid future easement problems and said that it has been reviewed by legal counsel. Motion: To approve the new 108 — Grant of Rights (Trowbridge/Rhein) Passes 5/0 Motion: To enter into Executive Session at 6:20 PM for the following reasons and to return to open session a. Pursuant to M.G.L.Ch. 164, Section 47D and M.G.L. Ch. 30, Section 21, Exemption 2, to conduct strategy sessions in preparation for negotiations with nonunion personnel or to conduct collective bargaining sessions or contract negotiations with nonunion personnel. (Rhein/Aptowitz) Passes 5/0 Roll call vote: Delvecchio-aye; Aptowitz-aye; Rhein -aye; Trowbridge -aye and Schoonveld-aye The Board returned to open session at 7:10 PM. Chair Delvecchio reported that they do not have a completed contract as of yet with Manager Sollecito. He said things went well in executive session and there are just some small changes that need to be made. He believes they will have a finalized contract to present to the ratepayers as of the next meeting. Motion: To adjourn at 7:11 PM (Schoonveld/Trowbridge) Passes 510 Respectfully submitted: Jacqueline Lee Signature of Clerk Date of Approval