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Mansfield Municipal Electric Department
Minutes of Light Commissioners Meetin�O W N
April 10, 2023
20B 9AY N A 9- 49
Present: Chair Jess Aptowitz, Vice Chair Frank Delvecchio, Commissioner Neil Rhein,
Business Manager Joseph Pereira, Light Department Manager Joseph Soll it 9&@I h.gg
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The meeting was held at the Mansfield Town Hall, room 3AB and was also virtual via
GoToWebinar. It was called to order at 5:40 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.
Motion: To designate Neil Rhein as acting clerk
(Delvecchio/Aptowitz) Passes 3/0
Motion: To approve the minutes of the March 20, 2023 Light Commissioners meeting
(Delvecchio/Rhein) Passes 3/0
Motion: To approve the minutes of the March 29, 2023 Light Commissioners meeting
(Delvecchio/Rhein) Passes 3/0
Citizens Comments - none
FY24 Operating Budget — MMED Business Manager Pereira presented the operating budget.
He stated that MMED will decrease the PPCA to $0; increase the PPC base rate $0.0176;
increase the distribution charge ($0.01 per kWh); and increase the monthly customer charge.
He reviewed a chart showing there was an increase in energy sales of 5% to 12% during the
time period between 2018 to 2022.
Mayhew Seavey of PLM stated that energy costs are significantly lower than they were a few
months ago and capacity costs are decreasing. He said that spot market energy purchases have
come way down from where they were expected to be. He did note that transmission costs
continue to increase and as of right now there is a 20% decrease in the average cost of purchased
power.
Commissioner Rhein questioned the increase from $6 to $8 in the monthly residential customer
charge. Business Manager Pereira said that based on his market research, it should actually be
doubled instead of increasing by $2. Manager Sollecito noted that MMED has been
underfunding this,
FY24 Capital Budget — Manager Sollecito presented the capital budget. He explained there
are four types of capital projects, one time projects; recurring projects; billable projects and
general plant improvements. There are 24 new capital project investments and one carry over
project from FY23 equal to $3,464,700 for FY24. Manager Sollecito reviewed the more
important projects which he said MMED will be chipping away at while the remainder on the
list are standard projects. He also noted that MMED has prepared a five year budget.
Commissioner Rhein questioned replacing the Taurus and asked who uses it. Manager Sollecito
said the engineer and office staff use it. Due to a recall, the Volt cannot be driven at this time.
Commissioner Rhein thought it would be more cost effective to have the employees drive their
own car and be reimbursed. Chair Aptowitz didn't think buying another car was necessary and
thought it was totally unacceptable that the Volt was sitting unusable. Manager Sollecito said
the purchasing clerk has been following up on having the Volt repaired. Manager Sollecito
believes it is still appropriate to purchase the new vehicle due to maintenance issues.
Chair Aptowitz questioned the facility enhancement project. Manager Sollecito said that is the
upgrade on the seven bathrooms in the building as well as four offices for the clerical staff.
Cash Reserve Analysis — Manager Sollecito reviewed a cash reserve analysis. He said the five
risk factors to consider were O&M expenses; power costs; historical investment in assets;
annual debt payment and a total five year capital plan. He noted that the last time MMED did
this was 2019.
After review, the total of these five items requires a minimum of $11,059,014. With the new
evaluation, the recommended minimum cash reserve is just under $15M ($14,575,578).
Rate Changes — Mayhew Seavey of PLM presented proposed rate changes for June 1, 2023.
He said that the present residential rate is $0.1820 and will drop to $0.1383 while the
commercial rate is 30%-40% lower than National Grid. Chair Aptowitz asked if Mr. Seavey
would say that the average residential bill will decrease by 20% and he answered yes. Chair
Aptowitz asked Manager Sollecito to reach out to the Town side with the rate change
information for their budgeting purposes.
Motion: To approve the FY24 Operating Budget
(Delvecchio/Rhein) Passes 310
Motion: To approve an amended FY24 Capital Budget less the purchase of the $45,000
automobile
(Rhein/Delvecchio) Passes 3/0
Motion: To approve the new rates as proposed for June 1, 2023
(Rhein/Delvecchio) Passes 3/0
Wholesale Delivery and Supply Service Rate — Manager Sollecito told the Board that MMED
was approached by National Grid and asked to provide service to a mid -sized plant in Foxboro.
MMED proposed to extend three phase to the Foxboro line and National Grid will take it from
there. He said the customer will not be charged the rate that would normally be charged to a
Mansfield customer, it will be higher since it is wholesale delivery service. Mr. Seavey said
that it is less than the Foxboro customer would be paying National Grid but they made sure that
Mansfield customers are not subsidizing it.
Motion: To approve the Wholesale Delivery and Supply Service Rate
(Delvecchio/Rhein) Passes 3/0
PILOT Allocation — Manager Sollecito explained that a PILOT is a "payment in lieu of taxes".
MMED makes this payment to the Town as municipalities do not pay taxes on their assets. Last
year the Board voted to pay $780,000. Manager Sollecito said there are different standards in
every utility and that FY22 was the last time that MMED actually did the calculation.
Motion: To approve the PILOT payment to the Town for $780,960
(Delvecchio/Rhein) Passes 3/0
General Manager's Performance Review for FY23 — Chair Aptowitz explained that all five
Board members were given a questionnaire with 16 questions for which they scored I to 5 with
1 being unsatisfactory and 5 being outstanding. He read all of the questions and each of the
five scores given to Manager Sollecito for an overall average of 4.3 from all five Board
members. Commissioner Rhein said he appreciated Manager Sollecito's communication and
Vice Chair Delvecchio commented that this is a very good evaluation. Manager Sollecito
thanked the Board for their support. He also thanked Chair Aptowitz and Vice Chair
Delvecchio for their service as this was their last Light Commissioners meeting.
Comments from the Commissioners — Commissioner Rhein suggested that the MMED
website reflect that Mansfield is a green community as he believes this is a selling point. He
also suggested that MMED provide an orientation for the upcoming Board members. Manager
Sollecito offered that any new members can come to the MMED office and sit with him.
Vice Chair Delvecchio thanked Manager Sollecito and said that he always tried to do what was
best for the Town at all times during his years of service.
Chair Aptowitz said that after fifteen years, it was time for a change and time to move on. He
thanked everyone and wished the Light Department employees all the best.
Motion: To adjourn at 7:11 PM
(Delvecchio/Rhein) Passes 3/0
Respectfully submitted: Jacqueline Lee
S' ature of Clerk Date of Approval