HomeMy WebLinkAboutlc_11142012 RECEIVED 14 field Municipal Electric Department
t ERK es of Light Commissioners Meeting
X013 .11‘14 21 November 14,2012
22 A
Present: Chairs; -i roe Dentin, Clerk Douglas Amino, Commissioner Jess Aptowitz,
Commissiomn d\ a_ 1 ki T own Manager William Ross,Director Gary
Babin
Absent: None
The light plant portion of the meeting was called to order at approximately 9 PM. Chairman
Dentin stated that this meeting was being televised and taped by Mansfield Cable Access.
Motion: To approve October 17,2012 minutes(Kozlowski/Annino)
Selectman Aptowitz wanted to change his quote from "he didn't see the need to keep $10
million in the account" to he wanted to "do the best we can to lower the rates for the
ratepayers" TABLED
Gary Babin presented the Directors Report
Financial Report for September 2012 - Director Babin reviewed he financial results for
September 2012. He stated:
The net operating income year to date through September is $970,648 while non-operating
income is $101,852. In total, net income through the month of September is $1,072,500.
Director Babin noted that this figure has been adjusted to account for FY13 under-collection
of Generation Charge revenues of$9,060, which is not taken into account when computing
FY13 income.
MMED's operating cash position through Sept. was $6,781,900. Adjusted cash taking into
account the Generation Charge under collection is$7,181,220.
Director Babin also stated that energy sales through September were up 3.2%from last year
MMED's Depreciation Fund stands at $2,733,826 as this money has been drawn down over
the last year to pay costs associated with the Bird Rd. substation.
Director Babin also mentioned that MMED's FY12 audit was completed in draft form.
Commissioner Aptowitz had questions about Generation Charge and the cost of power over
the past year Director Babin explained the difference between last year's power supply costs
and this year's expenses.
Commissioner Aptowitz also asked about collections. Director Babin stated that collections
have gone well..
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PILOT Payments for Massachusetts Municipal Light Plants -Based on 2011 DPU data, a
summary of PILOT payments made by municipal light departments was presented by
Director Babin. He stated that the data was sorted in different formats in order to provide
different measures of how MMED's PILOT payment compare with that of other municipal
light plant communities.
Commissioner Aptowitz and Director Babin provided a brief history of MMED's PILOT
Program and how the payments were determined.
Director Babin said the results have been sorted in different ways to present alternate views of
the data in helping to determine if a change in the current PILOT is warranted. This approach
is not designed to determine whether a formula or a fixed amount is the best approach but
rather it is to provide a reasonable measure of how MMED's PILOT payment compares with
that of other municipal light plant communities.
The results from sorting the data were reviewed. Of the 40 municipal light plants surveyed, 3
systems did not respond to the survey and that 3 communities make no PILOT payment.
Director Babin reviewed the various methodologies.
The calculation of the PILOT by percentage of operating revenue method is often used by
municipals to determine their PILOT payment to the town. Mansfield ranked 13th highest on
the list with the PILOT representing 1.52%of operating revenue.
The calculation of the PILOT by cost per kWh sold to customers provides probably the most
accurate and reasonable measure of the impact of the PILOT on customers. It takes into
account the actual cost of the PILOT to each customer and prorates the impact based on
usage. Mansfield ranks 13th highest on the list with a cost of 0.22 cents/kWh. For the typical
750 kWh residential customer,this is a cost of$19.80 per year
The calculation of the PILOT by the total amount contributed is the amount of the actual
PILOT payment by town. Mansfield ranks 14th highest by amount contributed with a
payment of $485,000. This measure, however, does not consider the operating revenues,
which dictates the magnitude of the payment.
As one final measure of the reasonableness of the MMED's current payment of$485,000, a
few different scenarios based on use of the FY12 commercial tax rate ($18.50 per $1,000)
times different plant values yielded the following calculated payments; based on net plant
value as of December 31, 2011 the calculated payment would be approximately $326,000. if
you were to include the value of the East Mansfield substation at $6.5 million that payment
would jump to approximately$447,000. From a comparative point of view,it was noted that
PILOT payments to towns from investor-owned utilities are based on net plant value times the
commercial tax rate.
A lengthy discussion ensued among the commissioners about the history of the PILOT in
Mansfield and why the issue is being addressed at this time Director Dentin requested a list
of municipalities who have generating plants.
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MIMED Banner Policy Director Babin noted that at the October 17 Board meeting, there
was significant discussion of the MMED banner policy as it affects signs hung over Route
106 near North Main Street. Director Babin was not present at that meeting and based on the
discussion, Mr. Ross contacted the Town Counsel's office to seek clarification of issues the
Board needs to consider should they wish to develop a new policy. Included in the Board
package was an email to Mr. Ross from Rod Hoffman, town counsel, who advised that if the
Board wants to revise the policy it should do so very carefully so as to not raise First
Amendment issues.
Commissioner Annino stated that he still feels that the Board should review the content and
look of any banners installed. Currently, the Board restricts banner use to non-profits.
Commissioner Annino would still like to see a mock-up of any banner request and approve it
prior to the banner being hung. He does not want to see tacky banners hung over the town
roadways. As such he does not see a problem with having control over the design and color of
banners that are hung on town property.
Director Babin stated that the MMED staff developed language for the Board's consideration
regarding the hanging of banners over Route 106. This language reflects the staff's
understanding of Commissioner Annino's views on the matter as stated at the October 17
Light Commission meeting. A copy of the currently approved and implemented policy was
discussed at length among the Board but no action was taken.
Hurricane Sandy and November 7 Nor'easter Summary — Director Babin reviewed
MMED's performance in both Hurricane Sandy and the November 7 Nor'easter. He noted
that in both cases the MMED electric system maintained extremely reliable service with few
customers affected.
He stated that MMED had only 40 customers affected by the Hurricane. The only outage of
significance was due to a limb that knocked down a rim
p ary wire on Lakeview Avenue and
created an outage of 25 customers for 1 hour 45 minutes. MMED also had to intentionally
shut off power on West St, briefly to correct a problem, affecting 4 customers. The only other
customer outages were 11 individual house services knocked off houses by private trees. All
customers were back in service by 10 PM on Monday evening.
Director Babin added that the lessons learned from Hurricane Irene were the most significant
factors resulting in far fewer outages. The biggest customer problem from Irene was the
Bristol Arms complex because of the open wire high voltage construction on the pole line
serving the complex. After Irene MMED completely rebuilt the high voltage supply to the
apartment complex along Bonney Lane and Erick Road and as a result had no problems at
that location during Sandy.
He noted that MMED aggressively performed tree trimming in the Ware Street and Essex
Street areas after Irene, spending 2 %2 months there as MMED's worst tree problems occurred
in those areas. Finally, the problems along Otis St. during Irene due to trees falling on the
triple circuit overhead construction is being alleviated by MMED's installation of
underground conduit and cable along Otis St. The first of those 3 circuits to be placed
underground will be completed by the New Year.
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With respect to the November 7 Nor'easter, only one customer was affected by a private tree
that knocked off their house service. That customer was quickly restored.
Director Babin also stated that MMED had provided mutual aid to Middleboro and Concord
during Hurricane Sandy and helped restore power there.
Letter from Bird Road Residents - Enclosed in the Board package was a letter from the
Bush and Walker families residing at 64 Bird Road expressing their dismay at the appearance
of the substation along with a petition signed by 75 residents. The petition states that
"Something more must be done to ameliorate this defacement of this neighborhood". The
MMED staff also enclosed copies of the renderings created by Weston and Sampson prior to
the project comparing actual photos with the renderings in order to provide a basis of
comparison.
The neighbors expressed disappointment and thought that the plants would be at a mature size
when they were planted and did not think they would be able to see the substation. The
Commissioners indicated they will look at it again next spring to see what needs to be
addressed. Director Babin stated that the MMED staff had been trying to schedule a meeting
with the residents but had not been able to do so yet.
Chairman Denting commented on the request for painting one of the side walls and the Board
discussed that they had looked at a number of wall stains prior to choosing one.
Old Business - Director Babin stated that the MMED would be doing a street light patrol for
burned out lights and they will be able to do it early in the evening as it is dark out by 5 PM.
New Business - Director Babin gave a brief report on the Mansfield High School Robotics
Program. The program has made a request for $5,000 this year as they are planning on
traveling to competitions.
Chairman Dentin suggested the funding of this program should be provided in the School
Department budget as it is a school program and shouldn't be funded through the MMED
budget.
Chairman Dentin also stated that the MMED can't"donate"to the schools through a PILOT
and they have used that language for several years now and he would like to change it. After
discussion between Board members it was decided to review it again at another meeting after
getting a legal opinion and/or consultation with the school superintendent.
Motion:To adjourn the Light Commissioners meeting at 10:37pm(Aptowitz) 5:0 passes
Douglas Annino December 12,2012
Signature of Clerk Date of Approval
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