HomeMy WebLinkAboutmin light commission 11/10/04
.
.
Mansfield Municipal Electric Department
Minutes of Light Commissioners Meeting
November 10, 2004
c \ n: f)..
L. Y ì~,.
1t ,...·-.....'CE
.". I,. ,
i ~ ',./ ~ ~) . .
Úl~ DEC - 6 a,¡"ì 9: 3 7
"" l'J"
fl.'""i ;'~~) i' ~
Present: Chainnan Roger Achille; Vice Chainnan Louis P. Amorû.ð.;S61ràikHtJéìiïíéTS
Dolan; Commissioner Mike McCue; Commissioner Steven MacCaffrie; Director Gary
Babin; Chief Financial Officer Kimberly Stoyle; Engineer Ann Langille; Engineer Chris
Cox; Line Foreman Gary D' Ambra; Financial Assistant Jacqueline Lee and Manager
John D' Agostino
Light Commissioners Meeting
The meeting was called to order at 7:30 followed by the Pledge of Allegiance.
Minutes of October 13, 2004
Motion: To approve
(AmorusolMacCaffrie) Passes 4/0/1 (Commissioner Dolan abstained)
Director's Report
Financial Report - Commissioner MacCaffrie inquired as to why MMED was still
awaiting the final audit report for 2003 from Goulet, Salvidio and Associates. He stated
that MMED was supposed to be saving $2000 in exchange for agreeing to wait for the
report until after tax season. He wanted to know why eight months had elapsed and there
was still no report.
Director Babin said he believed the report was received last year in November as well.
Commissioner MacCaffrie stated he asked this same question last year also and that this
was unacceptable. Chief Financial Officer, Kimberly Stoyle, reported the numbers were
ready six months ago and that last year's report was held up because of legal matters.
Director Babin indicated that there are some wording issues involved with the 2003 audit
that Town Counsel had become involved in. Town Manager D' Agostino added his hope
is that it will be done soon.
Commissioner MacCaffrie wanted to know what would be done going forward to ensure
that things would get done in a more timely manner. CFO Stoyle said she needed to
stress that it's nothing Goulet has done, and that it's not an accounting problem but a
wording problem. She suggested that Mr. Mangiaratti might be better able to answer the
question. She also stated that she was under the impression that the Board was already
aware of the outstanding issues.
Commissioner MacCaffrie stated he was not looking to lay blame, either on the Town
side or Goulet's side. Town Manager D' Agostino offered that Goulet's work is done but
the Town is looking to have things worded a certain way and hopefully, the report would
be completed by December. Vice Chainnan Amoruso pointed out that if this situation
occurred in his business, he'd be fined, and he felt Commissioner MacCaffrie's questions
were legitimate.
Chief Financial Officer, Kimberly Stoyle, then reviewed the profit and loss statement and
the balance sheet for September. Total metered sales revenue for September was
$2,287,734, which is down 2.5% from September 2003. Total power production expense
was $1,389,094, up 0.8% from September 2003. Net income before payment in lieu of
taxes for the month was $389,656, down 25.3% from last year. There was an after
payment in lieu profit of $332,656, representing a decrease of 31 % from last September.
CFO Stoyle pointed out MMED did make money, which is a positive sign. She reported
the YTD net income through September was $1,374,854, which is down 43% from last
year. There was a YTD net increase to surplus of $948,854, also down from last year by
53.7%. CFO Stoyle said MMED is still hopeful about making a decent profit for the
year. Vice Chainnan Amoruso asked if she had any idea what that profit would be. CFO
Stoyle answered approximately $1.2 million, which is well below the allowed 8%, but is
still good considering all the factors this year. She also stated cash is holding steady as
MMED continues to make payments on the Gilbert St. Substation.
Director Babin wanted to point out the profit and loss statement showed purchased power
expense was up $161,000, while sales were down $440,000. This would explain the
logic behind why MMEDhas had to increase the PPCA and was representative of the
undercollection of power supply costs during 2004.
Mansfield Utility Assistance Program - Director Babin stated that in its first four years
of existence, the Mansfield Utility Assistance Program, which has been funded by
MMED, gave financial aid to qualified people for their gas, oil and electric bills. It was
actually more of "fuel assistance" program than "utility assistance", as oil is not a utility.
Beginning last year, the money was used strictly for electric bills.
The proposed use of the money for this year will be the same, according to Gail Farrugia,
Director of Social Services. Last year's MMED contribution was $40,000 with a
remaining balance carried over to this year of $13,000. Ms. Farrugia requested a
contribution this year of $30,000, which is supported by MMED staff.
Director Babin suggested the following wording for the motion, which would reflect the
intent of the Board and would eliminate questions as to the propriety of the appropriation:
Suggested Motion: That the Mansfield Municipal Electric Department contribute
$30,000 as a payment in lieu of taxes from earned surplus, which will be recorded as
a below the line expense, to the Town of Mansfield for the purpose of donating this
money to the Mansfield Utility Assistance Program.
The suggested motion was made by Commissioner McCue, with a second by
Commissioner MacCaffrie. However, when Chainnan Achille asked for discussion on
the matter, Vice Chairman Amoruso asked if this was a privately held company, wouldn't
2
it be an above the line expense? He did not believe this belonged in the PILOT. Director
Babin stated he and CFO Stoyle discussed the wording and decided it was the appropriate
way to go, after having reviewed a legal opinion that MMED had received from Rubin
and Rudman some years ago on this very issue.
Vice Chairman Amoruso said he had problems with the wording, believing it would
handcuff the Board, and stated he would not be supporting the motion. Director Babin
said this would supplement the PILOT that the Board had previously voted as a cash
payment to the Town and would not detract from it. He also explained that the handling
of how this accounted for (i.e. above or below the line) would impact the amount that
MMED can legally earn, and therefore, how much the 8% profit can be.
Vice Chairman Amoruso suggested that this $30,000 donation directly benefits MMED
because it helps people pay their electric bills. He believed that since it directly benefits
MMED, not the ratepayers, it shouldn't be called a PILOT. Commissioner MacCaffrie
wondered what is the difference then, between this, and the appliance rebates? Vice
Chairman Amoruso answered that benefit is still going to the ratepayers. He reiterated he
will not vote for the motion as it stands, although he does want the money to go to the
Mansfield Utility Assistance Program. Commissioner McCue added he was comfortable
with the wording, and still wants to keep his motion as it stands.
Given that there is a current balance in the Utility Assistance Fund account, it was
suggested that this matter could wait until the December meeting based on getting further
clarification of the issue. Director Babin offered to send the Board copies of the legal
opinion on which he based the wording prior to the next meeting for the Board's review.
Motion: To table the issue of MMED's donation of $30,000 to the Mansfield Utility
Assistance Program pending further clarification.
(AmorusolDolan) Passes 5/0
Mansfield High School Robotics Program - Director Babin stated that in the past,
MMED has made both a financial contribution and a donation of time to the Mansfield
High School Robotics Program. Engineer Ann Langille has generously given of her time
in the past and is willing to do so again this year, he indicated.
The MMED staff recommended a contribution of $5,000 in response to the Mansfield
High School's recent written solicitation of funds. Commissioner MacCaffrie asked
Engineer Langille if the Robotics team would be available to come to a meeting for a
demonstration, which they have done in the past. She thought this would be a good time
of year for them to come.
Motion: That the Mansfield Municipal Electric Department contribute $5,000 as a
payment in lieu of taxes from earned surplus, to be recorded as a below the line
expense, to the Town of Mansfield for the purpose of donating this money to the
Mansfield High School Robotics Program.
(MacCaffrie/ Amoruso) Passes 5/0
3
MMED Capital Budget - January 2005 to June 2005 - Director Babin stated that
since the October 13 Light Commissioners Meeting, where the Board voted to change the
Light Department's fiscal year to June-July, MMED has been working on a six month
capital budget for the Board's review.
Chairman Achille wondered if the Board could approve it here without bringing the
matter to town meeting. Town Manager D' Agostino answered a town meeting vote was
not necessary to approve the Light Department's budget.
Chairman Achille commented that the budget MMED had presented was very detailed
and professional. He thanked Engineer Ann Langille, Line Foreman Gary D' Ambra and
any other staff who contributed. Commissioner MacCaffrie suggested that perhaps it
would benefit other town departments to take a look at the format of this budget.
Director Babin said that because this was the first budget he has presented at MMED and
because it was dramatically different from anything the Board has previously seen, he
would like to provide a brief overview. He stated that the digger/derrick truck being
requested was not included in the $1,191,000 budget request since it would not actually
be paid for until late 2005. He was seeking, however, the Board's authorization to
prepare bid specifications and to put the vehicle out to bid as part of this budget
authorization at an estimated cost of $160,000.
Director Babin explained that MMED has taken an aggressive approach to infrastructure
renewal to deal with Mansfield's explosive load growth rate. He reported the load
growth in Mansfield was 4.6% from 2002 to 2003 and is 2.88% in 2004 year to date.
This was double the growth rate of the aggregate of all other MMWEC utilities in both
2002 and 2003 and more than double of the New England growth rate in both years.
Director Babin then invited Engineer Ann Langille to speak regarding the capital projects
since she and Gary D' Ambra had developed the specific projects and associated costs for
all of the projects listed in the budget.
Engineer Langille felt it was important to go back in time to demonstrate where MMED
has been and where it is going. She began by explaining that a lot of work has been done
in the past 5-6 years for three major reasons: (1) electrical load growth (2) retirement of
older substation equipment and (3) increased reliability of the distribution system.
MMED has increased the number of 15KV distribution from 4 feeders to 8 feeders with
the rebuilding of the Gilbert St. Substation. MMED is currently in the process of
upgrading the capacity of each circuit from Gilbert St. to 600 amperes. She pointed out
that seven distribution reclosers have also been installed. There was an elimination of
aging equipment at High Street in 2003. MMED is now completing the second upgrade
at Gilbert Street Substation and has installed 35 miles of distribution circuits.
4
Engineer Langille explained there are 5 major projects to be done that are listed in the
Capital Improvement request. The 1 W7 feeder will be installed in the new underground
conduit system at the intersection of Jewell Street, Williams Street and Tremont Street.
The 1 WI feeder will be assuming the load of the 1 W6 feeder. There are 2 areas in the
industrial park, 55 Cabot Boulevard and Oxford Road, which need to be upgraded.
Underground cable needs to be installed from Hampshire Road to 55 Cabot Boulevard,
while new conduit and a new manhole are required on Oxford Road. New conduit and
manholes will also be installed to provide a raceway for the new 1 WI feeder and the
existing 1 W3 feeder from Old Elm Street at School Street to the Route 495 overpass.
Ongoing projects that MMED will be working on are replacing the cutouts which are
continuing to fail. Currently, there are about 200 in need of replacement. MMED will
also look at upgrading existing underground areas for better reliability, primarily
residential areas, as well as upgrading older areas with overhead wires. As a result of the
study from Quad 3, a few system modifications need to be made due to the National
Electric Safety Code. There is also a pole inspection process that MMED is now starting,
which is made easier now that MMED has use of the GIS system. Once the cutout
replacement is complete, it is expected that those manhours will then be expended on the
pole replacement project.
Chairman Achille asked if there were any questions regarding the issues Engineer
Langille had discussed. Clerk Dolan wanted to know how much acreage there is at
Gilbert Street Substation. Director Babin indicated that he did not know 'offhand. Mr.
MacCaffrie asked how much MMED had appraised the land at Gilbert St. Substation for
that'MMED was proposing to buy from National Grid. Director Babinapölogètically
declined to discuss the matter, explaining MMED is actively negotiating right now with
National Grid and did not want to publicly disclose a price.
Vice Chairman Amoruso inquired if FINCOMM also received a copy of this budget?
Director Babin answered that 3 copies of the budget had been left in the FINCOMM's
Town Hall box on Friday, November 5, which is when the budget document had been
completed. Clerk Dolan asked if the numbers for police details, manhours, etc., were
accurate? Director Babin said Engineer Langille and Line Foreman D' Ambra had spent
many hours in many meetings deriving these figures so they would be accurate.
In discussing the Projects by Plant Account section of the budget, Director Babin said
that it is the nature of the electric utility business that when a service related problem
arises, the problem cannot be deferred but needs immediate attention. Money is allocated
in the budget to deal with those very type of problems, which are unforeseen but must be
done as a quality of service related issue. If the problem is large in nature and requires
that a crew be taken away from a planned project, there is a possibility that some of the
projects listed in the summary will now not be finished on time.
Chairman Achille asked if there were any questions or concerns regarding any of the line
items. Commissioner MacCaffrie stated that 2 items jumped out at him almost
immediately, the 2005 Crown Victoria for the Manager and the 2005 Ford Explorer for
5
the Director. He had 2 issues with the Crown Victoria for the Manager. First, he had a
problem buying larger cars instead of downsizing to an economy car. Since this car
would not be used 24/7 or need to go from 0 mph to 90 mph, as a police vehicle would,
he did not see the need for buying a large vehicle. The second issue he had was the fact
that MMED would be paying for it. He believed this is not consistent with the salary the
Manager receives from the Light Department. He felt the money should come out of the
Town budget, where it's specifically identified. Commissioner MacCaffrie also stated
the Light Department should not be used as a cash cow.
With regard to the Director's 2005 Ford Explorer, Commissioner MacCaffrie had a
problem with the Director needing four wheel drive. In a storm, he believed it was more
important for an out of town Lineman to be able to get in to work, not the Director.
Vice Chairman Amoruso asked Director Babin to tell the Board about the vehicle he
currently drives. Director Babin reported that, ironically, through no fault of his own, he
was involved in an automobile accident that very morning. The other driver was given a
citation for failure to stop for a stop sign and Director Babin's vehicle would go through
the evaluation process for repair.
Director Babin went on to say that he took issue with Mr. MacCaffrie's characterization
of his position and the need for his presence at MMED during inclement weather when
there were widespread outages. He stated that he requested a four wheel drive vehicle in
trying to prepare to be at work in the worst of conditions. Director Babin stated that he
has worked a lot of ice storms and that a Crown Victoria is not the vehicle you want to
drive under those types of weather conditions. He cautioned the Board not to discount
managerial requirements on a jobsite in emergency conditions. He said it was important
for them to understand that the Director provides leadership and a level of direction that
is required in extreme emergencies.
The other justification Director Babin gave for the purchase of his vehicle is that there
currently is no fleet vehicle for the MMED administrative staff. If a staff member is
going to a seminar or a meeting as a representative of MMED, they take their own car
and are reimbursed for mileage. If the Board authorizes a new vehicle to be purchased
for the Director, the Crown Victoria currently driven would then become available to the
staff for this purpose.
Clerk Dolan stated he was not against Director Babin getting a new car, but was against
the purchase of a 4 wheel drive vehicle. He said it was unnecessary and a lot of expense
for something that won't get much use. Vice Chairman Amoruso's opinion was that,
outside of the gasoline issue, this was an appropriate amount of money to be spending on
a vehicle for the Director. Town Manager D' Agostino said that, with regard to the gas
issue, perhaps the Police and Fire departments should begin to look at smaller sedans,
although the Police Chief is against purchasing anything that is not a Crown Victoria.
Clerk Dolan offered that the vehicle the Police drive is their office, as they spend their
entire day in it, so he did not have a problem with someone in that capacity driving a
6
larger car. Commissioner MacCaffrie believed the issue was whether the car was used as
a front line vehicle.
Commissioner MacCaffrie stated vehicles these days are designed to go over 100,000
miles and pointed out that Director Babin's car has 88,000 miles on it. Commissioner
McCue said he found the request to be reasonable. He felt Director Babin had adequately
explained why he requested 4 wheel drive and also believed $25,000 was a reasonable
amount of money. Chairman Achille had concerns regarding the Director's car. He told
Director Babin that he believes he has to be tried and tested. He offered there are other
Directors in Town who do not drive brand new cars. He felt this request was a little off
tempo.
Chairman Achille did not have the same issues with the Town Manager's car. He did not
see anything wrong with the Light Department paying for this automobile. His opinion
was that, hopefully, this would free up some money on the Town side. Commissioner
MacCaffrie disagreed, stating the position of Light Department Manager was created
because of oversight of the department. He added that this position was not 24/7 to the
Light Department but to the Town, and his contract says the Town shall provide him with
a car. He believed the Board should let him convince them that the Town should buy him
the vehicle, not let the Light Department buy it for the Town Manager.
Town Manager D' Agostino responded by saying his time as Town Manager is split
equally between the Town and the Light Department. He said this was due to a variety of
reasons, some of which the Board was well aware. Commissioner MacCaffrie suggested
that perhaps the Light Department should pay half of the Town Manager's salary. Town
Manager D' Agostino said that Director Babin is responsible to oversee the daily
operations while his position in the Light Department is administrative and oversight. He
offered that a car was purchased for Lee Azinheira, half paid by the Town and half by
Enterprise funds. He stated that since this had been done, a precedent has been set.
With respect to the overall budget, Commissioner McCue said that while he had
questions on other parts of the budget, including information regarding industrial park
upgrades, he believed it was best to hold them until a future time.
Motion: To approve the MMED capital improvement budget for the period
January 2005 through June 2005 with the exception of the 2005 Ford Explorer for
the Director and the 2005 Crown Victoria for the Manager
(AmorusolMacCaffrie) Passes 5/0
Motion: To approve the purchase of a new digger/derrick at a cost of $160,000,
which will actually be an expenditure in the FY06 budget as it will not be received
until the later half of 2005.
(McCue/Amoruso) Passes 5/0
'1
The implication of the second motion was that the MMED staff could start to put together
the bid documents and proceed with the procurement of the vehicle during the first half
of 2005.
Commissioner McCue asked why the Town was not paying for Town Manager
D' Agostino's car? Town Manager D' Agostino responded that the Town couldn't have
made the appropriation until May at Town Meeting, at which time, a transfer could be
done to reimburse the Light Department. Chairman Achille's opinion was since Town
Manager D' Agostino also has the position of Light Department Manager, nothing
precludes the Light Commissioners from buying him a car. He reiterated that this
enables the Board to free up money for the Town by allowing the Light Department to
pay for it. Commissioner MacCaffrie was not in agreement, and wondered if in the
future, the Light Department could pay for whatever the Town needed.
Motion: To approve the purchase of a $22,000 Crown Victoria for the Manager
(AmorusolDolan) Passes 4/1 (MacCaffrie against)
Motion: To approve the purchase of a $25,000 vehicle for the Director
(AmorusolMcCue) Fails 2/3 (MacCaffrie, Achille and Dolan against)
Clerk Dolan again stated he has an issue with the necessity of 4 wheel drive. He
wondered if there wasn't a 4 wheel drive Light Department truck available to Director
Babin to take home in the event of a storm. He said he would be willing to vote in favor
of a motion for the amount of $22,000 instead of $25,000.
Motion: To approve the purchase of a $22,000 vehicle for the Director
(Dolan/Amoruso) Passes 3/2 (MacCaffrie and Achille against)
Questions and Comments - George Dentino, 2 Gladiola Terrace, pointed out the PPCA
was just increased and real estate assessments have gone up, but there is enough money
to spend on automobiles. He said that the Director's Crown Victoria with 88,000 miles
was designed to get more mileage than that and many in the Police Department do. Mr.
Dentino reminded the Board they sat there and listened to Mr. Babin say Crown Victorias
aren't good in a storm but it's OK to put the Police Department in them, just not the Light
Department.
Mr. Dentino felt putting the Town Manager's car in the Light Department budget is
ridiculous, as is his pension. He believes this is a blatant attempt to move money from
the Municipal side to the Light Department side, which takes money from the ratepayer.
He said when money is made through the meter, it is lost forever. If money is coming
from a real estate tax bill, at least the taxpayer can claim it on their federal tax return. He
stated ratepayers were being charged an indirect tax through the meter, so the Town is
bleeding the ratepayer for the taxpayer.
8
. ..
.
Mr. Dentino also questioned why the Town Manager needed a new car when the one he
is driving has 90,000 miles on it? He believed that in the past, Town Managers have
always gotten hand me down vehicles.
Chairman Achille then told Mr. Dentino he would give him a short, last word on the
budget. Mr. Dentino stated this was typical and the Board was acting true to form, by
taking the vote first, then asking for comment. He believes the Board gives the public no
say.
Adjournment
Motion: To adjourn the Light Commissioner's meeting at 9:20
(Dolan/Amoruso) Passes 5/0
Respectfully submitted: Jacqueline Lee 12/1104
~--~
gnature Of~
J2-j-OC¡
Date of Approval
9